Sydney Opera House Annual Report

2014-15 LE CORBUSIER TAPESTRY COMES HOME Jørn Utzon commissioned the great Le Corbusier to design a tapestry for the Sydney Opera House in 1958. Nearly 60 years later it will take its place there. “On behalf of the family, I couldn’t be more delighted that the tapestry is finally coming ‘home’ to the Sydney Opera House, in keeping with our father’s original intention. My father greatly admired Le Corbusier and they engaged and collaborated deeply. Le Corbusier incorporated the city and architectural details of the planned Opera House into his composition. It belongs in Sydney, and we’re thrilled at that this legacy will live on in the Opera House.” Jan Utzon

2 Detail from Les dés sont jetés. Full image, Spotlight p.20 04 Our History

05 Who We Are

06 Our Mission

07 Elements of Our Strategy

07 Our Essential Values

08 Highlights

09 Awards

10 Chairman’s Message

12 CEO’s Message

16 Element 1: Our Stakeholders

21 Element 2: The Building

24 Element 3: Performing Arts

25 Resident Companies

27 Artistic Associates

30 Sydney Opera House Presents

34 Venue Hirers

36 Element 4: Visitor Experiences

40 Element 5: Our People and Business Agility

41 Organisation Chart

42 Corporate Governance

50 People and Culture

54 Financial Overview

60 Sydney Opera House Financial Statements

114 Sydney Opera House Trust Staff Agency Financial Statements

140 Government Reporting

174 Our Donors

179 Contact Information

181 Index

183 Our Partners

3 Our History

2015 @@ NSW Government reserves $202 million for Renewal projects; Theatre Machinery Project announced for Joan Sutherland Theatre

2013 @@ The Opera House celebrates its 40th Anniversary; Renewal planning begins; by-invitation group of supporters The Idealists formed

2011 @@ First Reconciliation Action Plan implemented; Vehicle Access and Pedestrian Safety project begins, the Opera House’s biggest building construction program since opening

2009 @@ Western Foyers refurbished

2007 @@ UNESCO World Heritage listing. The Opera House is the youngest site to be listed, and one of only two sites to be listed during the lifetime of its architect

2006 @@ Asian-language tours begin in Mandarin, Japanese and Korean

2005 @@ National Heritage listing

2002 @@ Utzon Design Principles published

1999 @@ Jørn Utzon re-engaged as design consultant to the Opera House

1973 @@ Opening Ceremony and Royal Concert with HM Queen Elizabeth II and HRH the Duke of Edinburgh

1966 @@ Jørn Utzon resigns

1959 @@ Work begins on Stage 1 of Sydney Opera House – the foundations

1957 @@ Jørn Utzon wins Sydney Opera House design competition

1954 @@ The Hon. JJ Cahill, Premier of NSW, convenes a conference to discuss the establishment of an opera house in Sydney

4 For the full Sydney Opera House history, visit sydneyoperahouse.com/the_building_history_heritage “We have returned again Jørn Utzon created and again to the study of “a building that changed these drawings and we are the image of an entire convinced they present country. It is the first time a concept of an opera in our lifetime that such house which is capable of an epic piece of becoming one of the great architecture gained Who buildings of the world such universal presence." ... Because of its very Architect Frank Gehry, quoted when the Pritzker We Are originality, it is clearly a Architecture Prize was awarded to Utzon in 2003 controversial design. We are, however, absolutely “Flying to Sydney on convinced of its merits.” Saturday ... 6 shows in Judging panel, Sydney Opera House 12 days ... travelling competition, 1957 included ... But SYDNEY OPERA HOUSE !!!!!!!” “The world knows now Sylvie Guillem, the greatest ballerina of her generation, on her Facebook page shortly before that there is a lot more appearing at the Opera House during her farewell down under than koala tour, August 2015 bears and kangaroos.” Martin Bernheimer, Los Angeles Times, 1973

More than half a century later, the Sydney Each year more than eight million people The Hon. Troy Grant MP Opera House has more than repaid the daring visit the Opera House, which is situated on Minister for the Arts and conviction of those who chose Jørn a traditional meeting place for the Gadigal Utzon’s visionary design for a momentous people. The Opera House is one of the We have the pleasure of building on Bennelong Point. The reaction busiest performing arts centres in the world presenting the Annual it continues to elicit only underlines that it with nearly 2000 performances a year and Report of the Sydney Opera has become the world’s House, a source of audiences numbering more than 1.4 million, House for the year ended 30 inspiration that is universal and perpetual. and many millions more experiencing our June 2015 for presentation to cultural activities via digital channels. Parliament. This report has As eminent architect Frank Gehry noted, been prepared in accordance the response was unprecedented. The It enthrals the most celebrated local and with the provisions of the Opera House did nothing less than alter international artists, to whom the Opera Annual Reports (Statutory the understanding of this country, both House is much more than just another stage Bodies) Act 1984 and the internationally and, most profoundly, at for another show. Public Audit and Finance Act home. A country still youthful, still finding its 1983. As a symbol of this country, the Opera way to cultural maturity, had created a place House also inexorably draws people for that embodied its aspirations. Australia was gatherings of local, national and international transformed. importance, whether it be a meeting of Now, more than four decades after it Heads of State, the focus of a Royal visit, opened its doors, the Opera House is itself the place to celebrate world sporting being transformed. To renew a building that achievements or the end point of the Sydney has become the symbol of contemporary Marathon, among many others. Australia, we need to harness the capabilities We are a not-for-profit public trading Nicholas Moore of 21st century technology to ensure that enterprise that generates 88% of operating Chairman the Opera House matches the passion of our revenue through ticket sales, food and artists, the evolution of artistic practice, and beverage, venue rental, retail, tourism the expectations and needs of our audiences and fundraising. The NSW Government and visitors. provides the remaining 12% and also funds The essence of the Opera House, cherished the building’s maintenance. This year the and protected by State, Federal and World NSW Government reserved $202 million for Louise Herron AM Heritage listing, will not change. At the Renewal works, which indicates the vital Chief Executive Officer same time, we are mindful that in a 1954 importance of the Opera House as a vibrant speech delivered to a conference on the cultural, social and tourist hub that can meet establishment of an opera house in Sydney, the needs of its vast and devoted public. then Premier the Hon. JJ Cahill said the Part of the heart and soul of this country, building “should be a credit to the State not the Opera House is now receiving its only today but also for hundreds of years”. third generation of audience members. We need an Opera House that is as This represents both an honour and a innovative, creative and ambitious as the responsibility as we work to ensure this people to whom it belongs. The ability of the extraordinary building is worthy of their – Opera House to continue to transform the of our collective – future. lives of generations to come depends on what we do now, as it did in 1957.

5 The Sydney Opera House embodies beauty, inspiration and the liberating power of art and ideas. It is a masterpiece that belongs to all Australians. ­We will treasure and renew the Opera House for future generations of artists, audiences and visitors. Everything we do will engage and inspire people through its excellence, ambition and breadth. We will strengthen our central role in Australia’s life and identity.

6 Elements of Our Strategy

01 OUR STAKEHOLDERS Achieving our mission requires greater engagement with key stakeholders, including our customers and Resident Companies, government, private and corporate supporters, commercial partners, staff and the broader public. Strong, mutually beneficial relationships are crucial if the Opera House is to continue to evolve.

02 THE BUILDING As custodians we will do the building justice, honouring the Utzon Design Principles and its standing as one of the world’s pre-eminent works of architecture and performing arts venues. To do this, we will work to conserve and renew the building, preparing it for future generations of artists, audiences and visitors. Our 03 PERFORMING ARTS Essential The Opera House is charged with the development and promotion of artistic taste Values and achievement and the encouragement of innovation. The Opera House represents the peak of artistic ambition, yet is grounded in a uniquely Australian egalitarianism. As we steam into our fifth decade, we will ensure the Opera House remains a vibrant cultural COLLABORATION landmark attracting, engaging and inspiring We will work together with a ever more people. shared purpose and vision.

VISITOR EXPERIENCES 04 FOCUS People love coming to the Opera House. It is a special meeting place and an essential We will not deviate from our part of a visit to Australia. We want visitors mission. We will learn from and locals to increasingly see it as the heart experience. of Sydney. We will offer a wide range of compelling reasons to come more often, to SAFETY stay longer and to enjoy the Opera House more. It will be vibrant day and night, inside Underlying everything we and outside. do is our commitment to work safely. 05 OUR PEOPLE AND BUSINESS AGILITY COMMUNITY We need the best and most appropriate We will be generous of spirit people and systems to deliver our mission. and welcoming. We will focus on long-term growth, underpinned by sound financial management and cost-effective delivery of services and we CREATIVIT Y will actively manage risk and safety. We work with imagination.

7 Highlights

01 OUR STAKEHOLDERS 02 THE BUILDING @@ Donors enable the purchase of the @@ Theatre Machinery Project for Joan historic Utzon-Le Corbusier tapestry Sutherland Theatre upgrade, announced at auction (p.14); Oddysea, a bespoke in June, self-funded by the Opera House. theatre piece for children with multiple Planning begins for work that will take and profound disabilities (p.13); place in 2017 (p.21) and Dance Rites, a new Indigenous @ NSW Government reserves $202 million dance competition to premiere at the @ funding for Stage 1 Renewal works Homeground festival in November (p.13) including upgrades to the Concert Hall @@ Neil Balnaves AO and the Opera House and Box Office and new Function Centre announce The Balnaves Foundation Open and Creative Learning Centre (p.21) House Program, which helps thousands @ Consultants appointed for the preparation of disadvantaged Australians to attend @ of an Accessibility Masterplan (p.21) Opera House performances (p.13) @@ Main works substantially completed on @@ Philanthropy increases 51% from $1.18m the Vehicle and Pedestrian Safety project in FY14 to $1.78m, an increase of 314% on and the Opera House Forecourt returned FY12 (p.16) to the public (p.22) @@ Maserati Australia becomes the Opera House’s exclusive auto partner, MasterCard becomes a Major Partner and 03 PERFORMING ARTS AMP Capital supports Homeground and @@ 1,445,553 people attend 1,941 MADE by the Opera House (p.17) performances (p.24) @@ MADE by the Opera House enters its @@ 817,820 people attend 844 performances second year with a new cohort of five by Resident Companies and Artistic Australian and five Danish students of Associates (p.24) architecture, design and engineering selected to participate in the international @@ 414,703 people attend 858 Sydney Opera exchange program (p.18) House Presents performances (p.24) @@ More than three million people engage @@ Two-year From Bennelong Point to the with Vivid LIVE digital content in the Nation broadband pilot program contemporary music festival’s biggest concludes (p.30) year to date (p.18) @@ Vivid LIVE achieves record numbers and @@ Sydney Opera House records a 16% critical acclaim under the new leadership reduction in energy use since FY01, an of Ben Marshall, the Opera House’s Head estimated annual saving of $400,000 of Contemporary Music (p.31) in energy costs (p.19) @@ A record 10,500 people attend the 2015 All About Women festival, including 500 at remote sites (p.32)

8 04 VISITOR EXPERIENCES @@ Bennelong Restaurant tender Awards awarded to The Fink Group with Peter Gilmore as executive chef; multi-million-dollar refurbishment undertaken ahead of Bennelong’s @@ Green Building Council of Australia reopening on 1 July 2015 (p.37) awards the Opera House a @@ Opera Bar tender awarded to Solotel- Green Star performance rating MorSul group. Refurbishment includes of four stars, which represents new banquette seating, main bar, raw bar best practice in environmentally and charcuterie bar (p.37) sustainable building management. @@ Opera House revenue from food and It recognises achievements in beverage operations exceeds $10 million green cleaning, energy efficiency, for the first time (p.37) environmental monitoring and @@ Revenue from Opera House tours reaches reporting and acknowledges the a record $9.3m and 355,849 visitors; Opera House’s contribution to revenue from Mandarin tours increases social sustainability by 32% over FY14 (p.37) @@ Design completed for Welcome @@ The Opera House wins NSW Centre (p.37) Government Green Globe Award for Sustainability in a Heritage 05 OUR PEOPLE AND Building for the Concert Hall BUSINESS AGILITY lighting upgrade to LEDs, which @@ The number of days staff are absent due saved 75% on energy for these to compensable claims falls by 64% (p.50) fittings while maintaining heritage values and improving theatre @@ First Indigenous Careers Day held, attended by 28 students from nine NSW performance high schools (p.50) @@ Resident Companies productions @@ 2,240 hours of safety training delivered (p.50) and Sydney Opera House Presents presentations win nine awards at the 2014 Helpmann Awards

@@ Resident Companies productions and Sydney Opera House Presents presentations attract more than 40 nominations for 2015 Helpmann Awards, resulting in 10 wins (announced in July 2015)

@@ Gold Australasian Annual Reporting Award 2015

9 Chairman's Message

Since its opening in 1973, the Sydney Opera House has Stage 1 of the program is under way. A new Welcome played a significant role in the nation’s cultural identity. Centre on the Lower Concourse is scheduled for An ambitious undertaking at the time, it remains a completion towards the end of 2015, funded by a powerful symbol of modern Australia. leadership gift from former chairman John Symond AM, a grant from the Commonwealth Department of It has also made a significant economic contribution, Heritage and Environment and matching funds from attracting more than eight million visitors a year, with the Opera House. a cultural and iconic value of $4.6 billion, according to the Deloitte Access Economics report released in The Theatre Machinery Project to upgrade critical October 2013. equipment and systems in the Joan Sutherland Theatre was announced in June 2015. The Opera House is self- At the same time, the environment in which the funding this three-year project in one of its largest and Opera House operates has evolved in ways that were most loved venues. impossible to anticipate at the time of its construction. Technology, in particular, has advanced at great speed, In February 2015, the NSW Government reserved $202 and with it the needs and expectations of visitors, million to complete a package of projects in Stage 1 of audiences and artists. Important infrastructure has the Sydney Opera House Renewal, including: reached the end of its operational life. @@ Improved acoustics, theatre machinery and In response to these challenges, the Opera House accessibility in the Concert Hall, our largest has embarked on a Renewal program to open more and busiest venue. This will greatly enhance the of the building to the public, allow more people to experience in a theatre that draws 40% of the total engage with our performances and transform the Opera House audience to more than 300 events theatre spaces. a year, including symphony, chamber, choral and contemporary music performances, comedy shows, In 2014-15, the NSW Government provided $13.7 million keynote talks, schools concerts and community to develop a blueprint and begin planning the priority events. projects. A staged suite of projects will ensure the building remains as relevant in the future as it has @@ A new premium function centre within the building been until now. envelope featuring expansive views of the bridge and harbour.

10 @@ A new Creative Learning Centre to educate students GOVERNANCE AND BOARD about the performing arts, develop their creative On behalf of the Trust and management, I would like to thinking and encourage the next generation of artists, thank the Hon. Helen Coonan for her steady and focused including those in regional and remote Australia stewardship as Acting Chair of the Trust from 1 January 2015 through our Digital Creative Learning team. until my appointment on 22 July 2015, after the departure @@ Upgrading all entry points and foyers to better meet of John Symond AM on 31 December 2014. We also thank the needs of our visitors. We know from the 2013 John for his contribution during a pivotal planning period Deloitte Access Economics report that seeing the for the Trust. Opera House is a key motivation for many people to Helen Coonan and Peter Mason AM were reappointed to visit Sydney. the Trust from 1 January 2015 to 31 December 2017. Award- These transformative Stage 1 works give a sense of the winning Australian actress Deborah Mailman joined the Trust scope of our vision for the Opera House. We remain on 18 February 2015 and is appointed to 31 December 2017 as mindful that Renewal must be balanced with careful one of the performing arts Trustees. I look forward to working project management and, above all, our responsibility as with them and fellow Trustees Catherine Brenner, Brenna a World Heritage-listed site to our audiences, Resident Hobson, Chris Knoblanche AM, Jillian Segal AM, Robert Companies, precinct businesses and the millions of Wannan and Phillip Wolanski AM. Their support, advice and visitors from around the world. counsel have helped me with a smooth transition into the role of Chairman.

FINANCIAL AND OPERATING PERFORMANCE THANKS In FY15, 1,445,553 people attended Opera House performances, an increase of 4.1% on FY14 (p.24). There The Trustees thank the NSW Government for the has been a dramatic increase over the past 10 years, with operational endowment and maintenance grants without attendance numbers up 13.6% on FY10 and 27.3% on FY05. which our enterprise would not be possible. Our deep There were 1,941 performances, an increase of 11.7% on gratitude goes to NSW Deputy Premier the Hon. Troy last year, 15.6% on FY10 and 25.8% on FY05. Grant MP, who as Minister for the Arts has directed the Government’s cultural vision. Excellent results in a number of areas contributed to a better than expected operating result (p.54). Private We are also extremely grateful to our many corporate giving increased by 51% over the previous year, food and partners and individual donors, who enable the Opera beverage revenue exceeded $10 million for the first time, House to do things it otherwise could not. while tours enjoyed a $1 million increase in revenue over CEO Louise Herron presides over a management team and FY14 and a 9.4% increase in patron numbers. Given a staff who show outstanding commitment and dedication to number of one-off contributions associated with the this great enterprise. I thank them all. 40th Anniversary celebrations in FY14, there was an overall decrease in self-generated revenue. However, self-generated revenue continues to trend upward, from $84.1 million in FY12 to $96.4 million in FY15. It is gratifying to see the successes in access, Indigenous engagement, sustainability and safety. They reflect the Opera House’s vibrancy, commitment to corporate social responsibility and forward thinking. Nicholas Moore Chairman

11 CEO's Message

The Sydney Opera House’s Decade of Renewal has changes to the Executive structure to better align begun. With the generous support of the NSW with our refreshed strategic priorities in the areas of Government, we are transforming the Opera House, the building, organisation, art and experiences. In line honouring its status as one of the most extraordinary with the NSW public sector-wide implementation of and loved buildings of the 20th century, while ensuring the Government Sector Employment Act 2013, the it fulfils its primary purpose as a vibrant cultural centre Opera House’s senior executive structure and transition in the 21st century. Through Renewal, the building plan was approved by the Secretary of NSW Trade & and all that goes on inside and around it will remain a Investment in June 2015. A completion date of source of inspiration for current and future generations 31 December 2016 was established by the Public of audiences, visitors and artists. Service Commissioner. In his message (p.10), our Chairman, Nicholas Moore, outlines the Opera House’s Renewal Stage 1 projects ARTISTIC COLLABORATION and how they will touch every aspect of the building and the business. Our cities and regions excel when The Opera House’s Resident Companies (Australian creativity, innovation, ambitious thinking and expert Chamber Orchestra, Bangarra Dance Theatre, Bell planning go hand in hand. We are proud of the role Shakespeare, Opera Australia, Sydney Symphony we play in making sure this is a great place to live, Orchestra, Sydney Theatre Company and The work and visit. Australian Ballet) and Artistic Associates (Sydney Festival and Sydney Philharmonia Choirs) are our life I would like to make particular mention of the Theatre blood. They collectively brought in nearly 820,000 Machinery Project and the temporary closure of the people to the House this year, an increase of about Joan Sutherland Theatre in May-December 2017. 75,000 on FY14 (p.24). Planning is well advanced as we work to improve the reliability, functionality and safety in the 1,500-seat Special congratulations go to Bangarra Dance Theatre theatre. It is important that we self-fund this $44 and Bell Shakespeare on their 25th anniversaries and to million project as a symbol of our commitment to Richard Tognetti AO for his quarter-century of inspired Renewal, and that we cut our cloth over the next three leadership of the ACO, which itself turned 40. We years to ensure its success. We are grateful to Opera farewelled John Bell AO, OBE from the company he Australia and The Australian Ballet for their cooperation founded, as he handed the artistic directorship to Peter as we work together to minimise the impact on Evans. John has made and will continue to make a patrons, staff and sponsors. remarkable contribution to Australia’s cultural life. Other important projects came to fruition during the Our producing arm, Sydney Opera House Presents, had financial year, including the reopening of Bennelong a particularly strong year in Contemporary Music and and the refreshed Opera Bar (p.37). It is a joy to in Talks and Ideas. Audiences for the Contemporary realise the potential of these spaces, and to receive Music program exceeded 100,000 for the first time, such immediate and overwhelmingly positive public with Vivid LIVE a central plank of that success. The responses. All About Women festival had a record year, with more than 10,000 attendances. We were thrilled this These and other projects are part of the huge 3D year to extend the festival’s reach via live-streaming jigsaw puzzle that is the Opera House. To manage its to venues in Western Sydney, regional Australia and complexities, our people and culture need to be strong. New Zealand, as a complement to its significant online We are building an organisation with the depth, drive presence (p.32). and resilience to deliver Renewal. We recently made

12 The digital realm is increasingly important. Among this September 2014, joining our other partners Interbrand, year’s achievements are: Y&R Group and Zip Industries. All are integral to the Opera House’s success. @@ More than three million views of Vivid LIVE content; Our donors and supporters have enabled inspirational @ The Global Conversations pilot, which linked @ projects in many areas, including: Australian and Korean students; @@ 625,000 views for the Minister for Men web series ACCESS associated with All About Women; @@ The Balnaves Foundation Open House Program, @@ Almost 2.4 million online views of Talks and Ideas launched in October 2014, gives thousands of material; and socially and economically disadvantaged families @@ Completion of From Bennelong Point to the Nation, the chance to experience the performing arts a two-year Digital Creative Learning pilot that through subsidised $5 tickets. brought the performing arts to students, teachers @ The expansion of opportunities for audiences with and families interstate and in regional and remote @ disabilities, including specialised programming Australia who would otherwise be excluded from such as the philanthropically funded Oddysea, a such experiences by geography, costs, a lack ground-breaking work for children with profound of local cultural infrastructure or technological and multiple disabilities. barriers (p.30). @ Arts Assist, now in its 11th year, provided ticket Another fantastic example of how we can reach well @ subsidies to students facing social and economic beyond Bennelong Point was Visions of Vienna, a disadvantage. collaboration between the Opera House, the Sydney Symphony Orchestra and the Vienna Tourist Board. This landmark multimedia event cracked open the ART AND IDEAS shells of the Opera House as live vision of the SSO performance was projected on to the sails. The concert @@ Our Talks and Ideas programming continued to go was relayed to crowds at Campbell’s Cove in the Rocks from strength to strength, including the launch of and streamed to the world. Our on-site commercial the Carnegie Conversations program. partners participated by playing the audio feed in @@ We secured foundation funding for Dance Rites, the Opera Bar, Opera Kitchen and the House Eatery, a new project to revitalise vanishing Indigenous leading to a spontaneous outbreak of ballroom dancing cultural leadership and practices – including on the Lower Concourse. language, dance, traditional instruments and skin markings – by creating a contemporary PARTNERSHIPS AND PHILANTHROPY and competitive forum for performance as part of Homeground, our annual celebration of First The Opera House’s many partners and individual Nations music, dance and culture. Dance Rites was donors provide critical support. funded by a consortium of Opera House donors and the Creative Music Fund, which raised more than Samsung entered its third year as Principal Partner. $40,000 in one night. In September 2015, Intel became a Major Partner, alongside Etihad Airways, Google and MasterCard. Maserati became the Opera House’s car partner in

13 CEO's Message

BUILDING AND RENEWAL THANKS @@ An extraordinary and little-known part of the My profound thanks go to the Opera House’s Trustees Opera House’s history, a tapestry Jørn Utzon for their continuing service and invaluable advice, in commissioned from Le Corbusier, will finally be particular to the Hon. Helen Coonan, who so ably led installed in its intended home after a group of the Trust in an acting capacity before the appointment Opera House donors enabled its acquisition. The of Nicholas Moore in July. Nicholas joins us at a crucial group was led by Peter Weiss AO and included Joe time and I look forward greatly to working with him. Skrzynski AO, who during his tenure as Trust chair The department through which our NSW Government re-engaged Jørn Utzon. endowment and Building Maintenance and Renewal grants are distributed changed on 30 June 2015. I thank PROFESSIONAL DEVELOPMENT Secretary Andrew Cappie-Wood for his guidance and support, and for helping ensure a smooth transition @@ Creating opportunities for the next generation to the Department of Justice from the Department of is a vital part of the Opera House’s Decade of Trade & Investment. I would also like to pay tribute to Renewal. Whether it is the Opera Award, to the very significant contribution of former Secretary of which the estate of the late Joy Lindsay made a Trade & Investment, Mark Paterson AO. substantial gift in this year, our MADE scholarship for architecture, engineering and design students, This year we farewelled three wonderful advocates or the Lloyd Martin Travelling Scholarship for arts of the Opera House: Chief Operating Officer Claire administrators, these life-changing opportunities Spencer, now CEO of Arts Centre Melbourne; are made possible by the generosity of our donors. Director, Theatre and Events David Claringbold; and Director, Programming Jonathan Bielski. They devoted @@ The Indigenous Work Experience Program, now themselves to the Opera House for a combined 46 in its fifth year, which introduces Aboriginal and years and each played a key role in many significant Torres Strait Islander students to the Opera House. achievements. The talent and dedication of the Opera I hope you can take a moment to read about some of House staff inspires me every day. our projects in the Spotlights throughout the report. I also pay tribute to the NSW Government, whose Many build on the very real opportunities that have generous support underpins our efforts to live up to the evolved from our third Reconciliation Action Plan and promise of the building in everything we do. third Access Strategic Plan.

Louise Herron AM Chief Executive Officer

14 Hazel Dompreh (left) with members of her family at Snugglepot and Cuddlepie. Photo: Prudence Upton

SPOTLIGHT The Balnaves Foundation Open House Program

“The Opera House is somewhere they Heights Primary School about what would never even associate themselves Hazel calls “the privilege of going to with being able to go; it’s not just cost, the Opera House. They’d never really it’s a mindset – ‘that’s not for me’.” done something like that before. They Marie Bryan is talking about what The were so happy,” she says. Balnaves Foundation Open House To Neil Balnaves AO, founder of The Program has meant for the families Balnaves Foundation, the program she works with as Corporate Relations is about ensuring that all people, Manager of BoysTown, which supports regardless of their circumstance, are disadvantaged young people. able to experience the transformative A joint initiative of the Opera House power of art and the Opera House. and The Balnaves Foundation, which To Marie Bryan, that process is under has a particular focus on promoting way. “The families we work with are culture and combating disadvantage, absolutely not in the position to be The Balnaves Foundation Open House looking at an outing to the Opera Program launched in December 2014, House. It’s probably the furthest making $5 tickets to selected shows thing from their mind. Not only does available to families experiencing the Open House program create this social or financial hardship. More than amazing opportunity for them to be a thousand people have enjoyed an taken out of their situation, it broadens Opera House performance in the first their horizons. It is hard to put a costing months of the program, including Hazel or a price on that.” Dompreh, who took her young nieces and nephew to the world premiere production of the classic Australian story Snugglepot and Cuddlepie in June 2015. The children couldn’t wait to tell their teachers at Winston

15 Element 01 Our Stakeholders

COLLABORATIONS AND PARTNERSHIPS The support of Government, corporate partners and private individuals is crucial to enabling the Opera House, a not-for- profit public trading enterprise, to be all it can be. Their contribution augments revenue from the Opera House’s trading operations, allowing it to present diverse art forms to the widest possible audience, education opportunities to young Australians regardless of their location or circumstance and access to those constrained by physical, financial or social disadvantage. With other stakeholders who contribute their time, expertise and resources, they are critical to ensuring that the Opera House remains, as our Enterprise Strategy states, “a masterpiece that belongs to all Australians”. In FY15 the Opera House received an endowment from the NSW Government of $13.17 million, which represented 12% of our operating revenue. Giving by individual donors and foundations contributed $1.78 million to the Opera House, an increase of 51% on last year’s $1.18 million. Cash sponsorship was $2.59 million, up from $2.15 million in FY14. Samsung entered its third year as Principal Partner and continued to break new ground, including a new Digital Discovery Tour and a whole new world of virtual reality experiences. The interactive educational app Quest to Stop the Mischief-Making Opera Ghost uses beacon technology to provide location-based educational content, aligns with the national curriculum, and is specially designed to challenge Years 3 and 4 students to explore the Opera House. Samsung and the Opera House collaborated to capture, in 360-degree virtual reality, key moments from Australian label Future Classic’s sold-out 10th-anniversary concert on the Northern Broadwalk as part of 2015’s Vivid LIVE program. Another first, a free virtual-reality performance by Squarepusher offered by Samsung in the Main Box Office Foyer

16 to celebrate the British dubstep pioneer’s Opera House Designated accessible viewing areas on the Forecourt debut, proved a huge hit with Vivid LIVE patrons. and special customer-transport arrangements were incorporated into major festival events on site, In September 2014, Maserati Australia became the including New Year’s Eve celebrations and Vivid LIVE Opera House’s exclusive auto partner, aligning with events. For the second year, the Opera House offered the All About Women festival, Summer at the House free audio-description of Lighting the Sails, the and the Opera House’s Opening Nights. centrepiece of the Vivid Sydney festival, for more than Long-term partner MasterCard became a Major 120 people. Partner of the Opera House from 1 May 2015 and AMP Capital increased its support, including backing the The Opera House hosted Mark Morris Dance Group’s Opera House’s signature annual festival of First Nations innovative global program Dance for PD (Parkinson’s culture, Homeground, and the Danish-Australian Disease), including a free community class for people student exchange program MADE by the Opera House. with Parkinson’s and their carers, as well as a two-day introductory teacher-training workshop to assist in The growing contribution of the Opera House’s building a network of qualified teachers who can lead community of donors was one of the year’s success Dance for PD classes across Sydney (see Spotlight, stories. Philanthropic revenue rose to $1.78m in FY15, p.35). a threefold increase in three years. Donors contributed time, funds and vital expertise to enable the Opera In partnership with Lifestart and the Royal Institute House to realise ambitions that would otherwise have of Deaf and Blind Children we offered Accessible been impossible, from bespoke programming for Babies Proms accompanied by a free Sing and Play children with multiple and profound disabilities, to program in the foyer (see Spotlight, p.23). The Opera subsidised tickets for the financially disadvantaged House partnered with Accessible Arts NSW and the (The Balnaves Foundation Open House Program, see Museum of Contemporary Art to provide an annual Spotlight p.15), the forthcoming Indigenous dance accredited Professional Development Day for special competition Dance Rites and the June purchase of the education teachers, titled Dance, Theatre and Visual tapestry Les dés sont jetés (“The Dice are Cast”), which Art: Engaging Students with Disability. brought a vital element of the Opera House story back The Opera House continued its support for emerging to the House (see Spotlight, p.20). artists with disabilities. Can You See Me? Company, an An exciting new partnership developed during FY15 initiative of Cerebral Palsy Alliance, performed its latest culminated in the announcement on 1 July 2015 that work Waiting Room to sold-out audiences in the Studio. the Opera House and Flying Fruit Fly Circus, based in Albury-Wodonga, would begin a three-year association to deliver performance and training opportunities for RECONCILIATION ACTION PLAN both organisations. The partnership was announced by The second year of the Opera House’s third Greg Aplin, Member for Albury, at the opening night Reconciliation Action Plan (2014-2016) concentrated of a return Opera House season of the Flying Fruit Flies’ on expanding the Opera House’s Aboriginal and Circus Under My Bed, an acclaimed production that Torres Strait Islander artistic content and audience has been nominated for Helpmann and Sydney participation, increasing Indigenous education and Theatre awards. employment opportunities, and enhancing cultural awareness. Key elements were the first Homeground festival (November), Indigenous work experience and ACCESS STRATEGIC PLAN trainee programs and the continuation of the popular The third and final year of the Opera House’s third Indigenous digital education tour Guwanyi Walama: Access Strategic Plan created tangible benefits for To Tell and Return. Work began on Dance Rites, a new patrons, staff and performers with disabilities, as annual competition open to Aboriginal and Torres well as enhancing the Opera House’s leadership and Strait Islander communities across Australia. Funded by reputation in arts access. Opera House donors, led by the Creative Music Fund, Dance Rites aims to revitalise vanishing Indigenous The Access Program 2015 was launched in February cultural leadership and practices, including language by the NSW Minister for Ageing, Disability and and traditional instruments. Participating groups will Multicultural Services, the Hon. John Ajaka MLC, at perform at Homeground 2015 in November and the an event in the Utzon Room attended by the Opera winning group will be featured at Homeground 2016. House’s Accessibility Ambassador, Louise Sauvage OAM. Accessible performances and experiences In November 2014, the Opera House presented Redfern were launched as part of the Opera House’s Creative Talks Back, a project funded by the NSW Government Learning, International and Children and Families to engage, through the medium of forum theatre, programming. Resident Companies Opera Australia, young at-risk people from the Redfern community. A Sydney Theatre Company, Bell Shakespeare and, for five-week workshop rehearsal period and subsequent the first time, the Australia Chamber Orchestra are performances allowed participants to explore and participating in the program, together with Artistic discuss matters of importance and relevance. The Associate the Sydney Philharmonia Choirs, also for the Opera House worked with a range of organisations, first time. including Redfern Police, the National Centre for Indigenous Excellence, Tribal Warrior, Redfern The Opera House piloted an excursion program in Community Centre, Headspace and Youthblock Mental partnership with the Art Gallery of NSW for students Health services, Alexandria Park High School, WEAVE, with intellectual disabilities, which mirrors its existing The Settlement and the Aboriginal Housing Company. partnership with the Museum of Contemporary Art. The workshops culminated in two schools shows With Opera Australia and the Giant Steps school we and one evening performance. Student and teacher also presented an autism-friendly performance of the feedback was highly positive, indicating that the show musical The King and I. had an encouraging impact on students and genuine education outcomes.

17 Our Stakeholders

Students and teachers from schools in Western of the Sydney Harbour foreshore. This panorama was Australia’s Pilbara region took part in a digital learning published on Google Views, as was a later project that project that combined the expertise of the Opera provided panoramic views of the interior of most Opera House’s Digital Creative Learning team and the West House venues. Together, the two projects attracted Australian Department of Education’s eLearning Pilbara more than two million views. More than three million Project (see Spotlight, p.33). Using knowledge and people engaged with Vivid LIVE digital content online. skills developed through the Opera House’s Broadband Our social media channels have an audience of 1.3 Enabled Education and Skills Services pilot project, million, with a Facebook reach of 135 million. The From Bennelong Point to the Nation, we reached six number of Facebook followers across all Opera House schools with a strong Indigenous student body. Some channels increased 10.6% to 674,205, Twitter followers experienced the interactive digital tour Guwanyi increased 42.9% to 87,394 and Instagram followers Walama: To Tell and Return, while others watched increased 81.6% to 22,013. a live-streamed performance of the play Bindjareb Pinjarra and took part in a post-show discussion. We generated $48.4 million through the website, Students from two Western Sydney schools and one chiefly from ticket and tours sales. This was a from Queensland attended the performance 15% increase in revenue on the previous year. Web of Bindjareb Pinjarra in the Studio. revenue via mobile devices increased by $3 million, or 5%, on FY14. MADE BY THE OPERA HOUSE The digital realm is increasingly the Opera House’s eighth stage, and in FY15 two All About Women MADE by the Opera House entered its second year festival sessions were live-streamed to locations in FY15. The Multidisciplinary Australian Danish in Parramatta, Albury-Wodonga, Mackay and Exchange program was established in 2013 during Christchurch, New Zealand, for a combined audience our 40th Anniversary celebrations and gives five of about 500 (see Spotlight, p.59). Feedback from Australian and five Danish students in the fields of Christchurch was exceptionally positive: “The live- architecture, engineering or design the chance to work stream event was a huge success for us. We sold out in each other’s country on collaborative projects. By by Friday and had around 150 people. The audience the time it ends, the 10-year exchange will create an really engaged with the panel, laughing a lot and alumni group of 100 professionals, 50 Danes and 50 breaking into spontaneous applause along with the live Australians, to continue the international and cross- audience. We have established that there is an appetite disciplinary links first forged by the Opera House into for this kind of event and we would love to do some new generations. Danes Caroline Richardt Beck, Jakob more in the future.” Franijeur Holmqvist-Larsen, Pernille Krieger, Jonas Snedevind Nielsen and Karina Korsgaard Jensen visited Sydney in July-August 2014 for six weeks. Australians ENVIRONMENTAL SUSTAINABILITY Alex Crowe, Nina Tory-Henderson, Nicholas Werrett, Julianne Lipman and Alasdair Mott completed their The second year of the 2014-2016 Environmental six-week program in Denmark in January and February Sustainability Plan made significant advances which 2015. The Danes’ project involved envisaging ways to were rewarded with a Green Building Council of deepen the Opera House visitor experience for future Australia (GBCA) 4 Star Green Star – Performance generations and the Australians imagined future use rating. The independent rating assessed our and development of a site in east Copenhagen. performance as industry best practice, while the Opera House is one of few World Heritage buildings globally to achieve green certification. As GBCA Chief DIGITAL REACH Executive Officer Romilly Madew said when the award was announced in August, most buildings that achieve In FY15 there were more than six million video views of a Green Star rating are new, and the Opera House our online content, while more than 44 million minutes “would have to be the most challenging” of all rated of our content was watched on YouTube, equating to buildings. “If you can green the Opera House, you can almost 84 years in play time. green anything,” she said. NSW Deputy Premier the During Vivid LIVE a worldwide audience had access Hon. Troy Grant MP said: “The endorsement sends to a panoramic view that showed Lighting the Sails a clear message that green buildings don't have to in context, created by digitally stitching together be new. Even the most recognisable and historic hi-res photographs for a seamless 360-degree view landmarks can earn a place among the most celebrated

18 The Future

@@ Intel becomes a Major Partner; broadcast studios renamed Intel Broadcast Studios (September) sustainable buildings in the world." The Opera House @@ The Dance Rites dance competition also won the NSW Government Green Globe Award debuts at Homeground 2015 for Sustainability in a Heritage Building for the Concert (November) Hall lighting upgrade to LEDs, which saved 75% on energy for these fittings while maintaining heritage @@ Priority-ticket access feature values and improving theatre performance. developed for Samsung mobile users (October) The Opera House has achieved a 16% reduction in energy use since FY01 (increasing from 9.3% @@ Upgraded search function for Opera in FY13), saving an estimated $400,000 a year in House website, making it easier for energy costs. We are on track to achieve our 20% customers to find content (August) electricity-consumption reduction target by June @@ Premiere of Oddysea, an interactive 2016. Vivid LIVE used 100% Green Power (120MWh) sensory theatre work designed for from renewable energy and tracked and offset other children with profound and complex emissions including flights, catering and waste to be disabilities (August) carbon neutral. Waste reduction initiatives included a successful OzHarvest food-donation trial during Vivid @@ Reconciliation Action Plan projects LIVE, design development for a waste and recycling include development of our first area in the new loading dock and an independent Indigenous cultural awareness waste audit. e-learning module, internship program, audience development While overall water use was lower in FY15 than FY14, strategy and a staff immersion the Opera House has not yet reached its target of program returning to the water use level of FY06 by June 2016. The Vehicle Access and Pedestrian Safety (VAPS) @@ Utzon-Le Corbusier tapestry project, high visitor numbers and new toilet facilities conservation under way in in the Lower Concourse were key factors. preparation for public display in the Opera House @@ Five Danish students of engineering, architecture or design (in the built environment) visit Sydney in July 2015, the third cohort in MADE by the Opera House student exchange program @@ Third group of Australian participants in MADE by the Opera House selected to travel to Denmark in January 2016 @@ Second recipient of the Lloyd Martin Travelling Scholarship for Emerging Arts Leaders, Anke Timm, selected following last year’s $100,000 five- year commitment to funding from the Alexandra and Lloyd Martin Family Foundation

19 SPOTLIGHT Le Corbusier Tapestry

Donor generosity has enabled the Utzon-Le Corbusier tapestry to be acquired for the Opera House

It was a story largely lost to history. that this rare expression of Jørn Few people knew that in 1958, Jørn Utzon’s original vision for the Opera Utzon requested a tapestry from the House’s interiors became part of great Swiss-French architect and the building as it entered its Decade urbanist Charles-Édouard Jeanneret- of Renewal. In June, the Utzon- Gris, better known as Le Corbusier, Corbusier tapestry was acquired for to hang in the Sydney Opera House. the Opera House thanks to a group A collaboration by the two master of donors led by Peter Weiss AO, architects, at either ends of their which included former Opera House career, Les dés sont jetés is an chairman Joseph Skrzynski AO, who astonishing work of art. re-engaged Jørn Utzon during his tenure, and Opera House staff. Late one Sydney evening in May 2015, Opera House staff unearthed “Jørn Utzon’s Le Corbusier tapestry the story – and the news that this represents a meeting of two of tapestry, which had long hung in the great design minds of the 20th Utzon’s Hellebæk house, would soon century,” Ms Herron said when the be auctioned. It would preview in acquisition was announced. “It is Copenhagen for two days only – and wonderful that philanthropists have by coincidence, Opera House CEO enabled us to incorporate this vital Louise Herron would be in Denmark piece of the Opera House’s heritage for one of those days. back into the building as we work to renew it, thanks to the commitment A few discreet phone calls and of the NSW Government. It will be a the Opera House’s community source of daily inspiration for us all.” of donors immediately rallied to the cause, determined to ensure

20 Element 02 The Building

RENEWAL Funding of $13.7 million was provided in the 2014-15 NSW Budget to develop a framework for the Opera House’s Decade of Renewal, which was launched during 40th Anniversary celebrations in October 2013, and to initiate design documentation for priority projects. A Project Management Office has been established to deliver these. In February 2015 the NSW Government announced that it had reserved $202 million for Stage 1 Renewal projects. The projects include Concert Hall refurbishment, a Creative Learning Centre, upgrades of major entry points and foyers and a new Function Centre. Tenders were invited for design concepts. Other Stage 1 Renewal projects started in 2014-15 included: Welcome Centre A Welcome Centre on the Opera House’s Lower Concourse is scheduled to open at the end of 2015. Funded by a 40th Anniversary gift from former Opera House Chairman John Symond AM, the Australian Government’s Your Community Heritage Program and the Opera House’s Principal Partner Samsung Electronics Australia, which has funded a major interpretive multimedia installation, this meeting place will make it easier for visitors to discover the Opera House, from tickets and tours to its vibrant cultural and architectural story. Theatre Machinery Project It was announced in June that critical theatre equipment and systems in the Joan Sutherland Theatre would be upgraded, effectively replacing the "engine" of one of the Opera House’s largest and busiest theatres. The Joan Sutherland Theatre will close for seven months in 2017 while the work takes place. The $44 million project will be self-funded by the Opera House. Accessibility Masterplan Consultants have been appointed to develop an overarching Accessibility Masterplan for the Opera House. It will investigate all theatres, foyers and spaces to determine accessibility compliance needs and explore potential solutions. The Masterplan, which is expected to be delivered in November, will be a blueprint that informs all future Renewal works.

21 The BuildingThe

The Future

CONSERVATION @@ Welcome Centre opens on the Lower Concourse The Conservation Management Plan 4th Edition, which builds on the highly regarded 3rd Edition, was prepared for public @@ Architects have been engaged exhibition. The Plan will play a particularly important part for concept and early design in Renewal, providing the Opera House with a sophisticated work as part of Stage 1 tool to safeguard the building and site’s outstanding World Renewal: Tonkin Zulaikha Heritage values and inform management decisions, long-term Greer Architects for the four and day-to-day. The CMP sets out policies, procedures and Front of House Projects, led other information to guide custodians in managing change by Tim Greer, who carried out to a heritage asset that is also one of the busiest performing the Bennelong refurbishment; arts centres in the world. It further embeds the Utzon Design Ashton Raggatt McDougall, Principles, published in 2002, to ensure Jørn Utzon’s vision is which was involved in central to all works. Melbourne’s Hamer Hall and Melbourne Recital Centre, A two-year Concrete Conservation Study began this year, for the Concert Hall technical made possible through a US$200,000 grant from the Getty and operational upgrades; Foundation. The Opera House will match this funding from internationally recognised its own resources. theatre consulting and architectural-lighting design firm Schuler Shook, whose VEHICLE ACCESS AND PEDESTRIAN SAFETY past projects include Hamer (VAPS) Hall and Lincoln Center’s The Opera House Forecourt was fully returned to the public David H. Koch Theater in New in FY15 following substantial completion of the VAPS project. York, for Concert Hall theatre Completion of fit-out, building systems and planning for design; and Müller-BBM as transition to operations is scheduled for the first three months lead on the Concert Hall of FY16. VAPS is the largest building construction project acoustics, assembling a team undertaken since the Opera House opened in 1973. It relocates of internationally renowned 1,000 weekly heavy-vehicle movements underground, greatly consultants to collaborate on enhancing visitor amenity and safety and making the movement the project of equipment and goods to and from the venues and precinct businesses more efficient. @@ Development of a Precinct Masterplan to integrate elements such as surfaces, OTHER PROJECTS signage, street furniture, lighting and interpretation An international tender process was run in FY15 to select the installations platform and team to implement the Building Information Model for Facilities Management, which will integrate all asset @@ Tenders called for new long- management and other systems. BIM4FM is projected to be term maintenance contracts operational in FY16. A centralised Opera House digital library of photographs was made available across the organisation. The annual maintenance program was successfully delivered.

22 SPOTLIGHT

Accessible Babies Proms

Sydney boy Beau Lyall is three and a for the kids to get up and get around. real music fan. When his mother took They included them in everything,” him to an Accessible Babies Prom with Naomi said. The concert included a country theme, “he got into it and he the opportunity for children to meet loved it”, said Naomi Lyall, who learned the musicians and see how their about the Babies Proms from Lifestart, instruments worked. “He really enjoyed the organisation that partners with the himself,” said Naomi, noting that Opera House to provide music and Beau particularly liked it when the play-based experiences for children performers encouraged children to aged two to five in a supportive, do actions. “The clapping – that was a friendly and relaxed environment. good bit.” “The performers were really inclusive. They made it really friendly and easy

Beau Lyall enjoying a country-themed Babies Prom. Photo: Daniel Boud

23 Element 03 Performing Arts

An expanded and critically acclaimed Vivid LIVE, record attendances at the annual All About Women festival, important distance education programs, community collaborations, a 10% boost in the total audience for our Resident Companies and Artistic Associates, increasing use of the Opera House’s external performing spaces and high levels of engagement with digital content were just some of the highlights of a vibrant year artistically for the Opera House. The Opera House is open 363 days a year, offering programs to audiences of all ages and cultural interests in its six theatres and across the Forecourt and other parts of the Opera House precinct. It is not necessary, however, to be physically present to experience the Opera House. In FY15 there were more than six million video views of our content across our owned channels including on the website, YouTube and Facebook, while digital education programs reached more than 9,000 students and teachers. This year 1.45 million people (a 4.1% increase on last year) attended 1,941 live performances (up 11.7%). Our Resident Companies and Artistic Associates presented 844 performances to 817,820 people and our in-house presenting arm, Sydney Opera House Presents (SOHP), staged 858 shows for 414,703 people. Venue hirers, who include schools and community groups as well as leading contemporary music presenters, brought 239 performances to the House (up from 219 last year) and a total audience of 213,030.

24 Resident Companies

AUSTRALIAN CHAMBER ORCHESTRA The Australian Chamber Orchestra, the country’s leading small orchestra, gave a dazzling series of performances in the Concert Hall that included the Helpmann Award-winning Reflections on Gallipoli(March), which combined film, song, the spoken word and music and featured Australian, British and Turkish composers. It was audio-described for vision-impaired patrons at the March 15 performance as part of the Opera House’s Access Program, the first time the ACO has been involved. The Four Seasons and several movements from other Vivaldi works were heard in a vivid new context in December The ACO’s Reflections on Gallipoli. and again in February, interwoven with compositions by Joseph Tawadros. Photo: Christopher Ireland Joseph (oud) and his brother James (percussion) also performed. Tognetti’s Beethoven (October-November) was performed twice to large audiences with a program that encompassed three works by Beethoven and the world premiere of Water, a work by Radiohead’s Jonny Greenwood. Other concerts featured Richard Egarr, director of the Academy of Ancient Music, presenting music from the Golden Age (June) and guest director and violinist Andrew Marwood (November) with works by Stravinsky, Dvořák and Enescu.

BANGARRA DANCE THEATRE Bangarra ended its 25th anniversary year on a high note with Bangarra celebrates 25 years!, held in November on the Opera House Forecourt. More than 2,000 Bangarra fans braved the rain for this free outdoor performance, which featured Deborah Mailman as master of ceremonies and Djakapurra Munyarryun singing traditional song. Bangarra premiered its new double bill lore in the Drama Theatre in June, featuring Sheoak by Frances Rings, her seventh work for the company, and I.B.I.S by Bangarra dancers Waangenga Blanco and Deborah Brown, both making their mainstage debuts as

Bangarra celebrates its 25th anniversary. choreographers. The vibrant and colourful I.B.I.S was set in the Torres Strait Photo: James Morgan Islands and celebrated the sense of community and resilience of the Torres Strait people. Sheoak was a thought-provoking exploration of the challenges faced by Aboriginal people today. Both pieces were critically acclaimed and lore was Bangarra’s third-most successful program at the Opera House, with the company performing 29 shows to more than 13,000 people.

BELL SHAKESPEARE In July 2014 Bell Shakespeare’s ensemble of eight actors who work exclusively on learning programs presented a pared back 90-minute version of Macbeth for high school students, directed by Resident Artist in Education James Evans. In December the Opera House was the final venue in an extensive national tour of Bell Shakespeare’s Henry V, directed by Damien Ryan. Set in an air-raid shelter during the 1940-1941 London Blitz, the piece connected strongly with audiences and was acknowledged with several Sydney Theatre and Green Room awards. The 2015 season opened with a John Bell with the cast of As You Like It. Photo: Rush new production of As You Like It directed by Co-Artistic Director Peter Evans. The light-hearted comedy ushered in Bell Shakespeare’s 25th anniversary year and featured founder John Bell as Jaques in his final acting role for the company before he retires as Co-Artistic Director. In June John Bell was nominated for a Helpmann Award for Best Male Actor in a Supporting Role in a Play for his work in As You Like It and in July was named the winner. In October 2014 he announced he would leave Bell Shakespeare at the end of 2015, handing over sole artistic leadership to Peter Evans.

25 Performing Arts

OPERA AUSTRALIA In July 2014 Opera Australia, Australia’s largest performing arts company, introduced the work of renowned director Sir David McVicar to Sydney audiences with the first in a series of three new Mozart productions. McVicar’s darkly gothic interpretation of Don Giovanni starred Teddy Tahu Rhodes in the title role and the cast included rising Australian star Nicole Car as Donna Elvira and Shane Lowrencev as Leporello. Opera Australia was honoured to present superstar Jonas Kaufmann in the Concert Hall in two highly Yonghoon Lee in Turandot. acclaimed August concerts of opera highlights. Opera Australia’s Photo: Branco Gaica wildly successful production of The King and I then broke new ground as the highest grossing show in the history of the Opera House and won 2014 Helpmann Awards for Best Musical, Best Costume Design and Best Sound Design. In a co-production with the Royal Opera, Covent Garden, Gounod’s Faust was brought to life in February with the thrilling young American tenor Michael Fabiano in the title role (Fabiano won the 2015 Helpmann Award for Best Male Performer in an Opera, announced in July). At the start of the 2015 Sydney Winter season the powerhouse singing of soprano Lise Lindstrom and tenor Yonghoon Lee brought audiences to their feet in the popular and enduring Graeme Murphy production of Puccini’s Turandot.

SYDNEY SYMPHONY ORCHESTRA Australia’s flagship orchestra, the Sydney Symphony Orchestra (SSO), gives more than 100 performances at the Opera House annually. In 2014 the SSO performed the world premiere of Jandamarra, a new Australian commission telling the story of Aboriginal warrior Jandamarra in collaboration with the Bunuba people of the Kimberley. A new work by Australian composer James Ledger, War Music, also premiered, marking the ANZAC centenary. In 2015 the SSO became the first Resident Company to be projected SSO Concertmaster Andrew Haveron in Visions of live in concert on to the sails when it performed in Visions of Vienna. Photo: Ken Butti Vienna. The opera in concert production of Wagner’s Tristan und Isolde was the jewel in the crown of the season led by SSO Chief Conductor and Artistic Director David Robertson. Other highlights included a program on music, emotion and the brain (Hear It, Feel It) demonstrating Robertson’s skill as a communicator, Beethoven’s Ninth Symphony and The Planets, with a digital education component and live web-stream. The Planets was also released on the Sydney Symphony Live label.

SYDNEY THEATRE COMPANY Sydney Theatre Company’s Drama Theatre season encompassed the experimental and the new, including a world premiere and two Australian premieres. In Andrew Upton’s first season as solo Artistic Director last year, his adaptation of Gorky’s Children of the Sun, directed by Co-Resident Director Kip Williams, began STC’s year at the House. This was followed in early 2015 by Williams’s visionary staging of Suddenly Last Summer, for which he won the 2015 Helpmann Award for Best Director. Sarah Goodes, STC’s other Robyn Nevin and Eryn Jean Norvill in Suddenly Co-Resident Director, received a Helpmann Award nomination for Last Summer. Photo Brett Boardman her gripping direction of the world premiere of Joanna Murray- Smith’s taut psychological thriller Switzerland. Beautifully designed by Michael Scott-Mitchell and starring Eamon Farren and Sarah Peirse, the production won the Sydney Theatre Award for Best New Australian Work. Finally, STC presented the MTC production of Jumpy by April de Angelis, directed by Pamela Rabe and featuring Australian comedy icon Jane Turner.

26 THE AUSTRALIAN BALLET Under the leadership of David McAllister, who this year became The Australian Ballet’s longest-serving Artistic Director, the country’s national ballet company thrilled capacity audiences at the Opera House. Its repertoire showcased the brilliance and diversity of The Australian Ballet’s dancers and introduced important international guests to Sydney. Resident Choreographer Stanton Welch staged his lavish, Bollywood-inspired version of La Bayadère in November, showcasing the company’s women in the famous “Kingdom of the Shades” scene. American Ballet Theatre prima ballerina Gillian Murphy Madeleine Eastoe in Giselle. and principal artists Karina Gonzalez and Connor Walsh from Houston Ballet Photo: Jeff Busby appeared during the season. Peter Wright’s adored traditional production of The Nutcracker ended 2014 and was performed to overflowing houses. David McAllister designated 2015 A Year of Beauty and included in his Opera House programming Maina Gielgud’s internationally acclaimed version of Giselle and an important selection of Frederick Ashton works headlined by the intoxicating Shakespearean ballet The Dream. American Ballet Theatre’s Stella Abrera was a guest artist for Giselle. The company and her many fans farewelled beloved principal artist Madeleine Eastoe after a stellar 18-year career: fittingly she was nominated for a 2015 Helpmann Award for her Giselle. Ako Kondo was welcomed into the highest rank after appearing as Giselle at the Opera House in April.

Artistic Associates

SYDNEY FESTIVAL Sydney Festival 2015, under the artistic direction of Lieven Bertels, once more offered a diverse selection of music, theatre, art and dance to celebrate our city in summer. Presenting 400 performances of 167 events the Festival was thrilled to include 19 world premieres, 21 Australian exclusives and 12 Australian premieres within its program. Among the world premieres was Sydney Festival and Sydney Opera House’s co-presentation of Masquerade, a magical new play by Kate Mulvany (produced by Griffin Theatre Company and State Theatre Company of South Australia). Masquerade brought to Nathan O’Keefe, centre, in Masquerade. life the much-loved children’s book by Kit Williams about a small boy with Photo: Brett Boardman enormous courage. Other highlights included Sydney Festival and the Sydney Opera House’s co-presentation of shows from renowned international theatre companies such as Théâtre Des Bouffes Du Nord withOn the Harmful Effects of Tobacco, a rarely seen one-act Chekhov play, and Pansori Project ZA’s UKCHUK-GA: Pansori Mother Courage. In 2015 the Festival was proud to once more work with its new and existing partners, continue its programming in Western Sydney and provide numerous free events throughout the city.

SYDNEY PHILHARMONIA CHOIRS Sydney Philharmonia Choirs, Australia’s largest choral organisation with a heritage stretching back almost 100 years, exists to share the joy of choral singing with participants and audiences. Highlights in 2015 were Easter performances of JS Bach’s masterpiece St John Passion. These concerts received exceptional reviews and were hailed as world class. Reviewer Harriet Cunningham wrote in The Sydney Morning Herald: “You are not likely to experience a better performance of this work. Hear it if you can.” The 10th anniversary celebration of iconic SPC event Chorus Oz took place over the The combined forces of Chorus Oz. 2015 June long weekend. With 1000 participants singing the choral world’s Photo: Keith Saunders greatest works, this concert performance was one of the year’s most exciting and exhilarating events for both participants and audience members.

27 Performing Arts

The Future

Australian Chamber Orchestra @@ Mozart’s Last Symphonies (October); ACO Collective debuts under the artistic directorship of Pekka Kuusisto (February); Theft, a program that traces the history of appropriation in music through the centuries, presented as part of Vivid LIVE 2016 (June) Bangarra Dance Theatre @@ Bangarra looks forward to sharing its new triple bill, OUR land people stories, at the Opera House in June 2016 Bell Shakespeare @@ John Bell directs The Tempest in an exclusive Opera House season (August); Damien Ryan directs Josh McConville in Hamlet (October-December); Artistic Director Peter Evans delivers his first program in 2016 Opera Australia @@ David McVicar directs the second opera in his series of three Mozarts, The Marriage of Figaro, in August; the Cole Porter musical Anything Goes berths in Sydney for September and October performances after winning three 2015 Helpmann Awards and being nominated for four others; the company celebrates its 60th anniversary in 2016 with a program including a co-production with Opéra de Lausanne of Verdi’s great but rarely performed Luisa Miller Sydney Symphony Orchestra @@ World-class artists such as violinist Anne-Sophie Mutter, pianist Lang Lang and trumpeter Wynton Marsalis appear with the SSO; Robertson conducts a multimedia presentation of Messiaen’s From the Canyons to the Stars; former Principal Conductor Vladimir Ashkenazy conducts Beethoven’s symphonies Sydney Theatre Company @@ Richard Cottrell directs Shaw’s Arms and the Man, with set design by Michael Scott-Mitchell and costumes by Julie Lynch (September); Sarah Goodes returns to the House with another Australian premiere, with Jacqueline McKenzie in the title role of Orlando, adapted by Sarah Ruhl from the novel by Virginia Woolf (November) The Australian Ballet @@ The Australian Ballet presents an electrifying triple bill of modern dance, 20:21 (November), ahead of Artistic Director David McAllister’s highly anticipated production of The Sleeping Beauty (November and December) Sydney Festival @@ The Sydney Festival’s 2016 program at the Opera House includes Anne Teresa De Keersmaeker’s legendary dance work Fase, performed by the choreographer herself; Mammalian Diving Reflex’sAll the Sex I’ve Ever Had, in which over-65s from Sydney share their stories; and Spear from Bangarra Dance Theatre’s Stephen Page, making his directorial debut in film Sydney Philharmonia Choirs @@ The 400-strong Festival Chorus and the Sydney Philharmonia Orchestra give special concert performances of the 1931 George and Ira Gershwin musical Of Thee I Sing (September); SPC presents the Mozart Requiem, to be preceded by a daytime singing workshop exploring Mozart’s greatest choral works (March); SPC continues its annual theme of presenting concert performances of well-known musicals with full choir and original orchestrations when it offers Leonard Bernstein’sWonderful Town in the Concert Hall (May)

28 Oliver Lee rehearsing for the LSO Discovery workshop performance

SPOTLIGHT

London Symphony Orchestra Workshop

In November 2014, Oliver Lee, 15, a the LSO’s Discovery program, the student at the NSW Central Coast Opera House, the Association of NSW Conservatorium, played with the Regional Conservatoriums and The London Symphony Orchestra. It Arts Unit in the NSW Department of was, Oliver says, a once-in-a-lifetime Education. experience. He was able to see an Stephen O’Connell, chief executive LSO Opera House concert too. “It was officer of Murray Conservatorium and inspiring,” he says. “I had my eye on president of the Association of NSW the concertmaster the entire time. Regional Conservatoriums, says it is He was dancing the music as well as hard to overestimate the impact of playing it. I learned to play with more such experiences. “What this means enthusiasm. It was definitely one thing is we can go back to our communities I took away.” and start a revolution,” he says. “We’re The LSO’s performance with students there to make that difference within was part of a four-day workshop, our communities, to inspire, to give coinciding with the orchestra’s tour to them something they don’t believe the Opera House. LSO players tutored they have access to. That’s our job. I young instrumentalists aged eight to want revolution at the heart of music 18 and joined them in a concert at the in NSW and I’d particularly like to Sydney Conservatorium. thank the Opera House and the NSW Government for the kind of support A total of 110 young players took part that allows life-changing experiences in the program, made possible by such as this.”

29 Performing Arts

Sydney Opera House Presents

CREATIVE LEARNING, In June the Opera House piloted a Korean-Australian CHILDREN AND FAMILIES exchange project, Global Conversations, with support from the Australia-Korea Foundation. Five Korean Creativity is central to learning. As the symbol of schools (125 students) connected with five NSW and modern Australia and the country’s leading cultural Victorian schools (145 students). A central element of centre, the Opera House is keen to ensure that creative the project was The Tale of Samulnori, a theatre work experiences are available to students and teachers based on a traditional Korean tale made by Australia’s wherever they live and whatever their circumstances. Legs on the Wall and Korea’s AsiaNow companies. The In FY15 the Opera House engaged with more than project involved a behind-the-scenes Opera House 33,000 school students and pre-schoolers through tour, a live-streamed performance of The Tale of the live performance and Digital Creative Learning Samulnori with a Q&A session with key artists, and a program. Live shows included a special Babies Prom, digital drama workshop. Little Drummer Boy, and our co-presentation of Macbeth with Bell Shakespeare. Nearly 100 primary In total the Opera House’s Digital Creative Learning and secondary teachers from 72 schools attended program delivered 151 sessions of live streams, Sydney Opera House professional development workshops, tours and pilot programs, reaching 9,092 forums, which are accredited with the NSW Institute students, an increase of 54% on last year. More than of Teachers. The forums encompassed Teaching 70 schools were from regional and remote areas, with Aboriginal Perspectives; Dance, Theatre and Visual 32 from interstate. Art: Engaging Students with Disability; and ITEC In partnership with Artology, an organisation (Information Technology and Education Conference). founded by philanthropist Graeme Wood AM to As part of the Digital Creative Learning program, a nurture creativity in young people, the Opera House two-year national project, From Bennelong Point to inaugurated the Fanfare Project. Inspired by a similar the Nation, was completed and evaluated. It used project at the Royal Opera House, Covent Garden, broadband technology to bring vocational training and the Australian national program invited composers performing arts education to teachers and students in aged 12 to 21 to create music that would alert patrons regional and remote Australia who would otherwise that their show was about to begin. Starting in March, be excluded by geography, travel costs, a lack of local eight winning fanfares were played in every foyer of cultural infrastructure or technological barriers. The every theatre before performances (in conjunction pilot was made possible by funding and in-kind support with the traditional cue bells), making these young from the NSW State Schools Connected Classroom people the most performed Australian composers in program, the Commonwealth Government’s Broadband the Opera House. Enabled Education & Skills Services Project (BEESS), During its season at the Opera House in November, and major UK-based philanthropic fund the Fidelity the London Symphony Orchestra’s education arm, Foundation. Findings were presented in partnership LSO Discovery, delivered two intensive music with the NBN Co at a forum in March. More than 80 education programs in association with the Opera arts industry and digital educators took part in the House, Sydney Conservatorium of Music, the forum, at which noted UK digital education expert Association of NSW Regional Conservatoriums and Professor Stephen Heppell was the keynote speaker. The Arts Unit in the NSW Department of Education BEESS trial programs involved many creative partners (see Spotlight, p.29). More than 100 students including Opera House Resident Companies Bell attended a three-day master class series with key LSO Shakespeare and The Australian Ballet and other musicians, culminating in a performance at the Sydney arts companies, organisations and artists such as Conservatorium’s Verbrugghen Hall. In addition, 35 Monkey Baa Theatre Company, Foundation for metropolitan composition students worked with LSO Young People Australia and comedy duo The Listies. animateur Paul Rissmann on a five-day project in Students, teachers and families across seven States which they deconstructed Stravinsky’s Petrouchka and and Territories were involved in the program, with a recomposed it. total of 1,177 people taking part during the two years The Opera House and The Arts Unit joined to deliver of the pilot (see Spotlight, p.39). The University of a series of master classes for The Arts Unit dance Technology, Sydney evaluated the project to offer ensemble and a mixed-ability group of dancers. recommendations to the Opera House and other Dancers from the celebrated Mark Morris Dance education and arts providers. Group, which appeared at the Opera House in June,

30 led the classes in which more than 30 NSW public of Vivid LIVE’s highlights, the sold-out FCX: 10 Years school dance students took part. A teacher resource of Future Classic, which attracted nearly 5,000 fans. online video clip was developed to support professional Vivid LIVE digital content was viewed more than three development in dance education. million times online. Opera House programming for children and families The interest in Vivid LIVE headline act Morrissey was was strong in FY15, attracting nearly 140,000 patrons to such that a ballot was used to enable fair distribution 24 shows with wide appeal. The 26-Storey Treehouse, to local, interstate and international fans. This also Andy Griffiths and Terry Denton’s follow-up to the allowed the four sell-out concerts to be ticketed to fans immensely popular 13-Storey Treehouse, was a great globally while avoiding website downtime or having an success with young audiences. Eighty performances impact on other events. Vivid LIVE programming also played to more than 26,000 people. Babies Proms were included Daniel Johns, making his Opera House debut another highlight, bringing the joy of music to more and launching his new album, Sufjan Stevens with his than 32,000 very young children and their families. new album, Flume and The Preatures. Among Babies Proms themes were Bollywood, The year-round contemporary music programming country music and percussion. drew more than 63,000 fans to Australian artists such A new stage version of the May Gibb's Australian as Angus & Julia Stone, Boy & Bear and Augie March classic Snugglepot and Cuddlepie, which opened in (all making their Opera House debuts) and international June, was a hit with critics and audience. There were stars including Damon Albarn, Sinead O’Connor, Gipsy seven performances in the Playhouse and Snugglepot Kings and Rodriguez. Almost all shows either sold out and Cuddlepie was included in the Balnaves Open or were close to capacity. House Program, which provides $5 tickets to allow We also expanded into new areas of modern music, more people to experience the performing arts. The delivering major artistic highlights in FY15 across Opera House produced three performances of The contemporary classical (Nils Frahm, Max Richter), Composer Is Dead in the Concert Hall in August for an world music (The Barbican’s In Dreams: The Music of audience of more than 4,400 people, including many David Lynch Revisited made possible by production school groups. The Composer Is Dead is by Lemony patrons Pierre and Isabelle Eichenberger). Snicket, the pseudonym of American author, playwright and musician Daniel Handler, and in this engaging Following successful concerts on Australia Day 2015, introduction to classical music masquerading as a a five-year partnership between the Opera House and clever whodunnit, “Detective” Frank Woodley solved the NSW Department of Premier and Cabinet was a murder mystery by interrogating each section in a agreed to enable the Australia Day Council to make Sydney Youth Orchestra ensemble. our Forecourt the centrepiece of national Australia Day activities. In July, Horrible Histories: Barmy Britain attracted nearly 13,000 patrons to nine performances. Leo was another huge school holiday success, with nearly ENTERTAINMENT 5,400 people attending 15 performances. In November the captivating promenade theatrical experience Hans Club Swizzle, the new show from the creators Christian You Must Be An Angel, from Denmark’s of international cabaret successes La Clique and Teatret Gruppe 38, was presented in partnership with La Soirée, had its world premiere at the Opera House Arts Centre Melbourne. The innovative work explored and entertained more than 28,000 people in the 20 Hans Christian Andersen tales in a mysterious and Studio for 75 performances in the first three months magical way and was nominated for best Children’s of 2015. In June the Opera House was co-producer of Theatre Award at the Helpmann Awards in 2015. In cabaret star iOTA’s new music-theatre work B-Girl, December a charming musical theatre work based on co-written with director Craig Ilott. B-Girl played to Judith Kerr’s famous 1968 children’s book The Tiger more than 6,000 people for 23 performances in its Who Came to Tea was presented in partnership with world premiere season. Arts Centre Melbourne for 34 performances and an The Playhouse was the venue for the Helpmann audience of nearly 12,000. Award-winning musical Sweet Charity, transferring from Hayes Theatre Co in January ahead of a national CONTEMPORARY MUSIC tour. Nearly 9,000 people saw 26 performances at the Opera House. Montreal-based Cirque Eloize’s More than 110,000 people attended contemporary Cirkopolis played to more than 10,000 people during its music concerts at the Opera House in FY15, the first school holiday run in October 2014. time numbers have exceeded 100,000. Forty per cent were first-time attendees of an Opera House performance. INDIGENOUS Vivid LIVE was the key driver of this success under Homeground, held in November, provides a major the first-time curatorship of Ben Marshall, the House’s platform for local Indigenous artists such as Dan Head of Contemporary Music. Attendance numbers Sultan and Ursula Yovich but also has a wider remit totalled just over 47,000, a record, as was the box to celebrate First Nations culture by showcasing office of $3.7 million. It was also an outstanding critical Aboriginal and Torres Strait Islander performance success. Vivid LIVE ran in May and June for the full alongside visiting artists from other countries. In FY15 length of the broader Vivid Sydney festival for the first Fijian, New Zealand and Canadian artists appeared at time and introduced initiatives such as free talks, a kids’ the Opera House. They included Rako dancers from performance and program of foyer activity, the hugely Rotuman, Fijian and Pacific islands; Jerome Kavanagh, popular Deep Purple Pool Hall bar in the Concert Hall who held workshops to introduce audiences to Maori Northern Foyer and internal exhibition and projections traditional musical instruments or taonga puoro; and from Lighting the Sails artists. The Northern Broadwalk Toronto-based band Digging Roots, which brought the was used as a new performance area, hosting one sounds of Canadian Indigenous culture to Sydney.

31 Performing Arts

During NAIDOC week in July 2014 the Opera House In its 10th anniversary year the Utzon Music Series held a series of film screenings, cabaret and theatre presented, among others, international luminaries performances and conversations on a range of subjects Simone Young accompanying Danish baritone including the queer community and homophobia. Bo Skovhus for a performance of Schubert’s Canadian First Nations musician and writer Alida Kinnie Winterreise (July), Scottish violinist Nicola Benedetti Starr, who has a large international LGBT following, with Ukrainian pianist Alexei Grynyuk September) appeared on discussion panels, as did Redfern Now and Austrian baritone Florian Boesch accompanied by stars Kirk Page and Noni Hazlehurst. Actor and director Malcolm Martineau for Schubert’s three great song Christopher Green presented his cabaret show Sorry cycles (June). Seems to Be the Hardest Word, which featured performers James Henry and Casey Donovan and Green’s satiric character Tina C. TALKS AND IDEAS Casey Donovan took part in Songrites, conducted in There was record attendance at the third All About partnership with Playwriting Australia. Troy Brady and Women Festival (held on International Women’s Day, Abe Wright were also involved in the year-long project 8 March 2015), a key element of the Opera House’s in which the three Indigenous musicians worked with wide-ranging Talks and Ideas program. More than Playwriting Australia directors and dramaturges to 10,500 people participated in the event, including explore their writing skills. about 500 at community-run satellite events at Parramatta in Western Sydney, Albury-Wodonga on The radio program Deadly Voices from the House the NSW-Victoria border, Mackay in Queensland and was supported by the Opera House, the Community Christchurch in New Zealand (see Spotlight, p.59). Broadcasting Association of Australia and the National Speakers included Australian of the Year Rosie Batty, Indigenous Radio Service. Recorded at the Opera Annabel Crabb, Helen Garner and Germaine Greer. House’s Recording and Broadcast Studio, it provided There were nearly 625,000 views across Facebook and a platform for discussion of critical issues facing the YouTube for the associated web series Minister for Men Indigenous community and gave voice to Indigenous featuring comedian Gretel Killeen. music, arts and cultural projects. The sixth annual Festival of Dangerous Ideas, held The All About Women festival was ushered in by Nathi, in August and co-presented with The Ethics Centre, or Crying for Country, staged overlooking the Opera featured an opening address by author Salman Rushdie. House in the Royal Botanic Gardens. This unique Spread across the Concert Hall, Drama Theatre, women-only ceremony of song, movingly performed Playhouse and Studio, the event sold more than 24,000 by Yolngu women, celebrated the dawning of the new tickets to provocative talks from speakers including day and the renewal of life. Nadya Tolokonnikova and Masha Alekhina of Pussy Riot, Stephen Pinker and John Pilger. A theatrical production about Western Australia’s Pinjarra Massacre, Bindjareb Pinjarra, was created In April physicist and cosmologist Stephen Hawking and performed by Nyoongar (blackfella) and Wadjella appeared at the Concert Hall from Cambridge (whitefella) actors and fused history, comedy, satire University via high-definition holographic technology and physical theatre. This risk-taking depiction of as part of a partnership with the University of New the mass killing of Nyoongar people at Pinjarra on South Wales’ Big Questions Institute and Cisco. The 28 October 1834, was performed in the Studio and two lectures, for which there was overwhelming transmitted digitally to schools in the Pilbara region demand, were Professor Hawking’s first in Australia. of Western Australia. FY15 introduced Carnegie Conversations, a collaboration with M.H. Carnegie and Co that INTERNATIONAL discussed Ideas for a Better Australia. In another first, the Opera House partnered the University of Three sold-out concerts in November by the London Melbourne and Wheeler Centre to offer the popular Symphony Orchestra and principal conductor Valery For Thought program in Melbourne. In June eminent Gergiev brought an audience of more than 7,800 to physicists Paul Davies, Lawrence Krauss and Rachel the Concert Hall. The LSO performed works by Webster turned their minds to the origins of the Prokofiev, Stravinsky, Rachmaninov and Shostakovich universe at a booked-out event held at Melbourne to widespread critical acclaim. The visit for one night City Conference Centre. It followed their appearance only by William Christie’s Les Arts Florissants and Le in the Opera House’s Joan Sutherland Theatre, which Jardin des Voix was another artistic highlight. The attracted a full house. baroque specialists presented In an Italian Garden, a themed program of arias and madrigals that won for Other high-profile speakers during the year were Christie and his group two 2015 Helpmann Awards online publisher and author Arianna Huffington, (announced in July 2015). author Jeannette Winterson, food experts Jamie Oliver and Alice Waters, and leading Indigenous statesman Sun by London-based Israeli choreographer Hofesh Noel Pearson. Shechter and a mixed bill from Mark Morris Dance Group brought two of the world’s most feted There were about 50,000 attendees at Talks and Ideas contemporary dance-makers to Sydney. Mark Morris events and nearly 2.4 million views of Talks and Ideas Dance Group also held workshops for NSW school online content. students and people with Parkinson’s Disease.

32 SPOTLIGHT

Pilbara Project

It’s not every day that a national symbol arrives in your classroom. But that is precisely what happened when the Sydney Opera House beamed into schoolrooms in the Pilbara region of Western Australia. The West Australian Department of Education’s Pilbara Cities Education Project – eLearning helped make the connection via the increased bandwidth and sophisticated videoconferencing technology it provides all schools in the region. All up, more than 160 young people took a digital tour or saw a live-streamed A scene from Bindjareb Pinjarra performance of the play Bindjareb Pinjarra, or both. Chelsea Miles, Coordinator – Pilbara Cities Education Projects, said the learning opportunities had been of 1834, in the south-west of the State, invaluable, not only through the online and ask questions in the following digital tour Guwanyi Walama, which Q&A. The Burrup Peninsula, where offers Indigenous perspectives of the Karratha is sited, has its own history Opera House’s site, but also through of violent deaths at the hands of white the pairing of schools distant from settlers. Natasha Hunter, Coordinator one another to work collaboratively. Aboriginal Education – West Pilbara “Our region is one of the largest in joined in the event with Tambrey Western Australia, so there are many Primary School. “It was a wonderful differences in culture and environment opportunity to widen the students’ across our own region,” she said. view of Aboriginal culture. It was “The opportunity for shared learning particularly great to see new ways of about different cultures, histories and learning with technology incorporating geographies in Sydney and across their arts and culture, telling of similar own region, in real time, while being in stories and situations that affected situ at their own schools was probably Aboriginal people throughout Australia the best outcome.” at that period of time. It was a fantastic engagement opportunity that I was Tambrey Primary School in Karratha proud to be a part of.” jumped at the chance to see a performance of Bindjareb Pinjarra, which deals with the Pinjarra Massacre

33 Performing Arts

Venue Hirers The Future

The Opera House is a prized venue for the @@ Deadly Voices from the House biggest names in music and entertainment. continues Among the most popular international @ A new Songrites project begins artists to appear in the Concert Hall were @ singer-songwriters Paloma Faith, Bob Dylan @@ Three-year deal with Australian and John Legend, Scottish comedian Billy World Orchestra to present Connolly and jazz greats Chick Corea and annual concerts at the Opera Herbie Hancock. They all played to capacity House, starting in July 2015 or near-capacity houses. In January British comedian Eddie Izzard drew more than 4,800 @@ Fanfare project continues with people to the Forecourt for a single show. eight new young composers selected The Forecourt was also the venue for On the Steps, a new collaboration with presenter @@ Seventh Festival of Dangerous Live Nation that offered artists with wide Ideas (September) with keynote appeal in an unparalleled setting. In February address from Nobel Prize- the artists in this series attracted a total winning economist and New audience of nearly 20,000. Australian York Times columnist Paul comedian and songwriter Tim Minchin Krugman on the resilience of gave two performances to more than bad ideas 10,000 people and local music stars Angus @@ The 52-Storey Treehouse and Julia Stone’s single Forecourt show (September-October, January) played to more than 5,400 fans. A concert from Sydney Opera House by Swedish pop duo Roxette was attended Presents by more than 3,700. @@ Mad Max: Fury Road director Equally importantly the Concert Hall was and co-writer George Miller the venue for a wide variety of schools appears at the GRAPHIC concerts, eisteddfods, community group Festival (October) events and festivals. They are a vital part of the performing arts program in the Opera House’s largest venue. The NSW Department of Education’s Arts Unit again gave many thousands of school children and their parents their first experience of the Opera House through choral festivals.

34 Glenda Rawlinson at the Opera House workshop. Photo: Daniel Boud

SPOTLIGHT

Dance for Parkinson’s

Glenda Rawlinson always loved dance. morale, builds confidence, encourages As a young woman she did everything people to regain self-esteem and from ballroom to go-go. Her diagnosis grace, helps develop useful cognitive of Parkinson’s Disease 11 years ago has strategies and changes attitudes about only strengthened her love for creative living with a chronic illness.” movement. “I feel exuberant,” she says, The workshop with MMDG performers of the emotions dance elicits. drew more than 80 people. Erica In June Glenda attended a teacher- Rose Jeffrey, Program Coordinator – training and community class workshop Dance for Parkinson's Australia, said held by the Opera House with Dance her organisation had some funding to for Parkinson’s Australia and Mark support classes but needed trained Morris Dance Group (MMDG), which teachers to make them possible. The in 2001 founded Dance for PD in the Opera House workshop came up US in association with the Brooklyn trumps. Three new Sydney classes (in Parkinson Group. The program has Bankstown, Pennant Hills and Kogarah) now spread internationally. Movement, have been set up as a direct result. choreographed specifically for people “The idea is it’s about the dance, not with Parkinson’s, “liberates them from the Parkinson’s. The focus is on high- their insecurities of not being able quality artistic, creative, expressive to predict what their body will do experience,” Erica Rose said. Glenda next”, says Glenda, who has been a agrees wholeheartedly and puts it strong voice in support of Dance for this way: “My motto is: I might have Parkinson’s Australia. “It also boosts Parkinson’s but it doesn’t have me.”

35 Element 04 Visitor Experiences

36 FOOD AND BEVERAGE TOUR EXPERIENCES The Opera House’s food and beverage operations Tours enjoyed a stellar year, building on last year’s provided a wide variety of options for the more than excellent showing. Numbers have increased 20% in two eight million people who are drawn to this inspiring years and in FY15 the number of visitors taking a tour place annually. Whether they are theatre-goers wanting or buying a tour package increased from 325,180 last a pre-show meal or post-show drink, international year to 355,849, a 9.4% increase. Revenue reached a and interstate visitors who have come to explore the record $9.3 million, an increase of $1 million over FY14. building or Sydneysiders who regard the Opera House There was a 32% increase in revenue from packages as their natural meeting place, there is something to that combined a tour with show tickets or a meal. Tours suit their tastes and needs. in Mandarin continued to grow dramatically. More than 100,000 visitors took tours conducted in Mandarin, Bennelong Restaurant reopened on 1 July 2015 after resulting in a 32% increase in revenue. Chinese New extensive remodelling that included a new kitchen, Year (February) was again a popular period, attracting furniture, floor finishes and lighting. The awarding 22,000 patrons to tours conducted in Mandarin. of the tender to The Fink Group in November and the announcement of Peter Gilmore as Executive The exceptional growth was driven by a robust sales Chef created a strong sense of anticipation which and marketing strategy for attracting new audiences, was fulfilled when Bennelong received exceptional with particular focus on China and the US. The tours reviews on opening. The menu celebrates the flavour, team implemented a regular product development diversity and quality of Australian produce and wine, cycle that has delivered new tours tied to festivals which Bennelong offers on the restaurant’s three levels and school holidays. There was also greater focus on in distinctive forms, from casual drop-in to three- packages, bundling Tours with food and beverage and course dining. These differently priced options make a performance tickets. Bennelong Restaurant experience accessible to more visitors. It is open every evening for dinner and for lunch on Friday to Sunday. One of Australia’s leading WELCOME CENTRE architectural firms, Tonkin Zulaikha Greer, designed Planning and design for a Welcome Centre, which will the multi-million-dollar refurbishment. The restaurant’s welcome, orient and engage with the 8.2 million people distinctive concrete, bronze and glass structure is who visit the Opera House annually, was completed in enhanced by the use of layered felt to soften the space FY15. It will provide a dedicated point of information and diffuse sound. Lighting designer Tom Dixon’s Melt and involvement for visitors and meet our aspirations lamps add a dramatic touch. Disabled access has been for sensitive interpretation of the site’s cultural heritage provided to the lower area of Bennelong Restaurant via and historic significance. Funding of $500,000 was a new retractable staircase lift. received under the Your Community Heritage Program Opera Bar on the Lower Concourse also has a (Protecting National Historic Site) in March 2013 refreshed look following the awarding of a new specifically for thematic interpretation. contract to Solotel-MorSul group. Major internal The Welcome Centre will be sited on the Lower refurbishment works in November included new Concourse and integrate the current Tours Meeting banquette seating, main bar, raw bar and charcuterie Point and Tours cloaking and ticketing area into one bar. There is new internal and external furniture. As hub. The Retail Store on the Lower Concourse will be well as trading strongly in summer, Opera Bar was rebuilt. New elements will include a Welcome Plinth at popular with patrons in October due to the Opera the neck of the site, providing an initial information and House’s contemporary music program and consistently navigation point, UNESCO World Heritage information, good weather. two dedicated interpretation zones with digital content Opera Kitchen enjoyed a busy November-February and visual displays telling the Opera House story and period and the record number of patrons enjoying the improved signage. A Welcome to Country soundscape Vivid LIVE festival (May-June) was reflected in a robust will enhance the experience. result for the theatre bars at that time. Completion is expected by the end of October. Despite the closure of Bennelong Restaurant for six months and the shorter closure of Opera Bar for refurbishment, Opera House revenue from food and beverage operations exceeded $10 million for the first time. There were nearly 2.4 million food and beverage transactions during FY15 compared with 2.1 million last year. Tenders were called for food and beverage operations in the Western Foyers.

37 Experiences Visitor

SUMMER PLAYGROUND Summer Playground was extended by six days in FY15 to accommodate the last week of school holidays. It ran from 3 January to 1 February, offering free activities for children and families in a relaxed environment on the Western Broadwalk and in the Western Foyers during our Summer at the House program. Summer Playground features included the extended Colonnade Café; the Taronga Zoomobile, which introduced native animals to visitors; and interactive performer Guru Dudu, whose Silent Disco Walking Tours encouraged audiences to dance around the Opera House precinct to the sound of uplifting tracks from the 70s, 80s and 90s. Free Creative Play enabled children to shape LEGO on hand-crafted tables of LEGO base plates. Computers then scanned the tables, reading the shapes to turning them into real-time compositions that were played in the Western Foyers. In its third year of operation Summer Playground again offered $25 tickets to selected shows, a Junior Tour and Junior Lunch, a sandpit for the little ones and, for adults, the Veuve Clicquot Airstream Pop-Up Bar serving seafood and champagne. Summer Playground was open until 11pm Sunday to Thursday and midnight The on Friday and Saturday, which made it the perfect setting for discussion and conversation after shows such as Sweet Charity, which enjoyed a highly Future successful season at the Playhouse.

RETAIL @@ Welcome Centre Retail retained the gains made in FY14, a bumper opens (October) year in which income from retail activities increased @@ Trippas White Group 20% over FY13. Danish Designs, a collection of items appointed to operate and brands from Denmark, was a popular innovation. dining, theatre bars Bodum glassware and the Minskat handbag range and events in the was introduced as part of an initiative that will expand Western Foyers from in FY16. For those wanting a smaller keepsake with a 1 September 2015 Danish connection, the Danish brand Pandora’s range under the direction of House-related charms and bracelets, available of Head Chef Lauren exclusively at the Opera House, was available Murdoch alongside a wider range of charms with Opera House associations, such as dancers and ballet slippers. @@ Launch of new online store In FY15 the best-selling items were again the LEGO Architect and LEGO Creator Opera House models; @@ Partnership with key Opera House Barbie with her sails-inspired garments; brands including and Opera House-shaped salt and pepper shakers. Australian designers Dinosaur Designs and There was increased focus on the development Fink Design of Opera House-branded merchandise and associations with local designers for exclusive branded products. @@ New Danish brands Licenced merchandise increased to 45% of all sales in-store, including compared with 25% last year. With the introduction Bang & Olufsen, of more premium items the average transaction value Ole Lynggaard in our stores increased from $26 to $29. Copenhagen and Nuance Greater collaboration with the Tours operation to ensure adequate staffing at all times was a factor in @@ New tours film the successful year. narrated by Hugo Weaving

38 SPOTLIGHT

From Bennelong Point to the Nation

The Kerr family (top left) with other families and The Listies

On one side of the country was They had been asked to send photos comedy duo The Listies; on the other, of their house, which The Listies the Kerr family from Perth. From deployed to make it appear as if Bennelong Point to the Nation, the they were in the Kerr’s kitchen. That Opera House’s Broadband Enabled was funny said Sofie, a keen arts Education and Skills Services participant who volunteers with Perth’s (BEESS) pilot program, put the two Awesome Festival for young people. together to explore the possibilities Neve liked the quiz, which involved all that technology offers. If the Opera the families who had dialled in at that House is to be a meeting place for time, and learning about how and why all Australians, it has to find ways to the Opera House was built. Sharyn involve those who can’t be physically adds: “As a parent I felt it held value present. One strand of BEESS involved as it helped make something iconic connecting the Opera House with and 'far away' like the Sydney Opera families many thousands of kilometres House seem a part of our community away. With their mother Sharyn, the and culture here in Perth. It was also Kerr girls – Sofie, 13; Neve, 12; and great for our girls to communicate with Cedar, 9 – took part in two sessions people in other parts of Australia with during which they had a virtual tour the Opera House being a conduit for of the Opera House, were able to ask that. That was something that gave questions about it, and interacted with them a real buzz and was quite new families in Victoria and Queensland. to them."

39 Element 05 Our People and Business Agility

40 Organisation Chart

MINISTER FOR THE ARTS

SYDNEY OPER A HOUSE TRUST

Chairman

Nicholas Moore SYDNEY OPER A DEPARTMENT HOUSE TRUST OF JUSTICE STAFF AGENCY

Chief Executive Officer Louise Herron AM

Chief Financial Director: Director: Acting Executive Director: Visitor Director: Officer Building External Director: Director: Experiences Safety, Security Relations People and Performing Arts and Risk Culture

Natasha Collier Greg McTaggart Brook Turner Katy McDonald Tim Calnin Jade McKellar Michelle Dixon

(from 21 September (from 30 November (from 14 September 2015) 2015) 2015)

41 Business Agility Our People and Corporate Governance

THE TRUST COMMITTEES, MEMBERSHIPS, ATTENDANCES Sydney Opera House is operated and maintained for the Government of New South Wales by the Sydney The Trust Opera House Trust (the Trust), which is constituted as The Trust consists of 10 Members appointed by a body corporate under the Sydney Opera House Trust the Governor on the nomination of the Minister. Act 1961. A Trustee holds office for three years and is eligible for reappointment for no more than three consecutive OBJECTIVES AND CONDUCT terms. The Trust must include at least two persons who have knowledge of, or experience in, the The Trust’s objectives are to: administer, care for, performing arts. control, manage and maintain the Sydney Opera House building and site; manage and administer the site as an Ms Deborah Mailman was appointed as a new Trustee arts centre and meeting place; promote artistic taste from 18 February 2015 to 31 December 2017 pursuant and achievement in all branches of the performing to Schedule 6 (2) of the Sydney Opera House Trust arts; and foster scientific research into and encourage Act 1961, which requires that the Trust include at least the development of new forms of entertainment and two Members with knowledge of, or experience in, presentation. the performing arts. Existing Trustees the Hon. Helen Coonan and Mr Peter Mason AM were reappointed The seven core performance requirements for the from 1 January 2015 to 31 December 2017. In addition, Board of Trustees in providing effective leadership are: as Mr John Symond AM completed his term as Chair @@ To agree core artistic, entrepreneurial, financial and of the Trust on 31 December 2014 and did not seek operational policies and objectives on an annual reappointment, the Hon. Helen Coonan was appointed basis and to set all the short, medium and long- Acting Chairperson from 1 January 2015. Mr Nicholas term delivery priorities for the enterprise; Moore commenced as the new Chair on 22 July 2015 to 31 December 2017. @@ To set and appraise the performance of the CEO and management team; Agenda items for the 11 Trust meetings held during the period included: the Building Renewal Framework; @@ To monitor and assist in the maintenance of reliable building projects including the Welcome Centre; and effective relationships with key presenting FY15-18 Budget and Four-Year Business Plan; 2013-14 companies; Financial Statements; Recurrent Asset Maintenance @@ To manage the financial affairs and various Program; Theatre Machinery Project; various food and supporting systems and reporting frameworks beverage, performing arts and commercial projects; commensurate with best international standards overall business performance monitoring; review of the and practice; Vehicle Access and Pedestrian Safety (VAPS) project, workplace health and safety performance, security @@ To maintain the best possible working relationship and business continuity; review of the Conservation with the Minister for the Arts in an environment Management Plan and Sydney Opera House By-law. where there is a secure trust from Parliament and a good working relationship with the media; @@ To maintain the landmark site and building and its amenity to ensure that it is always presented as a vibrant, contemporary performing arts venue which changes and evolves over time; @@ To promote directly and indirectly the performing arts with a view to maximising engagement and enthusiasm from diverse audiences for a range of exceptional experiences. The Trust review and individually sign a Code of Conduct for Trustees (p.144).

42 Audit and Risk Committee Conservation Council The Audit and Risk Committee provides independent The Conservation Council provides conservation assistance to the Trust by overseeing and monitoring and heritage advice to the Trust. Three meetings the Opera House’s governance, risk and control were held this year, with key agenda items including: frameworks, and its external accountability conservation management; Conservation Management requirements. Plan; Heritage Awareness Training; VAPS; Building Renewal Framework; Welcome Centre; outdoor events; Seven meetings were held this year with key agenda Theatre Machinery Project; concrete conservation items including: review of business performance, strategy; interpretation strategy; food and beverage financial statements, strategic and operational risk building works; Eminent Architects Panel; MADE framework, security and business continuity, fraud by the Opera House; Site Activation Development control, workplace health and safety performance, Application; and heritage training. compliance with applicable laws and regulations; approval of the internal audit plan and review of seven Eminent Architects Panel internal audit reports; review of draft FY15-18 Budget The Eminent Architects Panel provides advice to the and Four-Year Business Plan and Theatre Machinery Trust through the Building and Heritage Committee Project; delegations approval; commercial precinct; on issues of architecture or design and in relation to review and approval of performing arts, food and the management and conservation of the building as beverage, and commercial and corporate systems it evolves with changing circumstances. Five meetings business cases. were held this year, with key agenda items including: Building and Heritage Committee Building Renewal; Box Office retail store; Welcome Centre; food and beverage building projects, furniture The Building and Heritage Committee provides and lighting. assistance to the Trust by overseeing and monitoring building, conservation and heritage matters at the Opera House. Four meetings were held this year, with key agenda items including: Vehicle Access and Pedestrian Safety (VAPS) project; Theatre Machinery Project; Welcome Centre; Environmental Risk & Environmental Sustainability Plan; Concrete Conservation Strategy; Fire Service Maintenance, Conservation Management Plan; Building Renewal Framework; Recurrent Asset Management Program; workplace health and safety; Eminent Architects Panel; updates on the financial status and progress of building works.

43 Business Agility Our People and

Building and Eminent Audit and Risk Conservation People Trust Heritage Architects Committee Council Committee Committee Panel

TRUSTEES Catherine Brenner 10/11 7/7 - - - -

The Hon. Helen Coonan 9/11 - - 2/2 - -

Brenna Hobson 11/11 7/7 - - 4/4 -

Chris Knoblanche AM 10/11 6/6 1/1 - - -

Deborah Mailman 3/3 - - - - -

Peter Mason AM 9/11 1/1 - 1/2 3/4 -

Jillian Segal AM 10/11 - - 0/1 4/4 -

John Symond AM 6/7 3/4 2/2 - - -

Robert Wannan 10/11 - 4/4 1/1 - -

Phillip Wolanski AM 10/11 - 3/4 - - -

MANAGEMENT Louise Herron AM - - 3/3 3/3 - -

Kya Blondin - - - 0/2 - -

Greg McTaggart - - 3/3 3/3 - -

Claire Spencer - - 0/1 - - -

EXTERNAL Sheridan Burke - - - 3/3 - - SPECIALISTS Kerry Clare - - - - - 3/5

Keith Cottier - - - - - 4/5

Tanya Koeneman - - - 2/3 - -

Robert Leece AO RFD^ - - 3/3 - - -

Rajeev Maini - - - 3/3 - -

Ken Maher - - - - - 5/5

Peter Mould - - - 2/3 - 4/5

John Nutt AM - - - 3/3 - -

Peter Poulet - - - 3/3 - 5/5

Josephine Wing - - - 2/3 - -

The first figure is the number of meetings attended during the year and the second figure indicates the number of possible attendances. Management are not Members of the Trust or Audit and Risk Committee and attend as appropriate. Mr Nicholas Moore, Chair of the Trust, was appointed 22 July 2015 and is therefore is not included.

^Mr Leece served as the Chair of the Building and Heritage Committee until 22 March 2015.

44 Trust Members

NICHOLAS MOORE CATHERINE BRENNER Joined the Trust 22 July 2015 Joined the Trust 13 May 2009 Chair of the Trust. He is serving his Member of the Audit and Risk first term to 31 December 2017. Committee. She is currently serving her second term to 31 December Qualifications BCom, LLB, FCA 2015. Background Qualifications BEc, LLB, MBA Nicholas was appointed Chief Background Executive Officer of Macquarie Group in May 2008. He joined Former Managing Director in the Macquarie in 1986 and led the investment banking division of global development of its advisory, ABN AMRO. Prior to becoming an funds management, financing investment banker, Catherine was a and securities businesses. He is corporate lawyer. now leading the continued global Other Directorships growth of Macquarie Group as it builds on its financial services AMP Life Limited (Chairman), strengths. National Mutual Life Association (Chairman), AMP Limited (Non- Government and Community Executive Director), Boral Limited Involvement (Non-Executive Director), Coca- Chairman of Screen Australia, Cola Amatil Limited (Non-Executive Chairman of the University of NSW Director). Business School Advisory Council, Government and and a Director of the Centre for Community Involvement Independent Studies. SCEGGS Darlinghurst Ltd (Non- Executive Director), Adara Partners (Panel Member).

45 Business Agility Our People and

THE HON. HELEN COONAN BRENNA HOBSON CHRIS KNOBLANCHE AM Joined the Trust 1 January 2012 Joined the Trust 1 January 2014 Joined the Trust 4 October 2013 Helen is currently serving her Member of Audit and Risk and Co-Chair of the Building and second term to 31 December 2017. People Committees. She is Heritage Committee. He is She was Acting Chair of the Trust currently serving her first term to currently serving his first term to from 1 January to 21 July 2015. 31 December 2016. 31 December 2016. Qualifications BA, LLB Qualifications MM (Arts Qualifications BCom, ACA, FCPA Administration) Background Background Background Former Senator in the Australian Chris served as Board Member and Parliament representing NSW from Brenna’s career in theatre Chair of the Australian Ballet (2001- 1996-2011 and Deputy Leader of management and production 13). Principal – Advisory & Capital the Government in the Senate. began in 1994. Since then she has Pty Ltd. Chris was Managing Held several Ministerial and been Production Coordinator and Director and Head of Citigroup Shadow Ministerial portfolios, Production Manager at Belvoir, Corporate and Investment Banking including Minister for Revenue Production Manager at Bangarra Australia & New Zealand (2005-12). and Assistant Treasurer. She has Dance Theatre and General He was previously CEO of Andersen served in Cabinet as the Minister Manager at Jigsaw Theatre Australia, CEO of Andersen for Communications, Information Company in Canberra. She is Business Consulting Asia Pacific Technology and the Arts. Helen currently the Executive Director and Regional Managing Director of was previously Chair of the Historic at Belvoir. As an independent Deloitte Management Solutions, Houses Trust of NSW, Chair of the producer, Brenna has produced Asia. Prior to Citigroup, Chris was a Law Foundation and a Director plays including Vital Organs (B Partner in the boutique Investment of the Royal Hospital for Women Sharp), The Suitors (Old Fitzroy bank Caliburn Partnership, now Foundation. Prior to entering Theatre) and the documentary With Greenhill Caliburn. Chris was Parliament, Helen worked as a Hearts and Hands. awarded the Centenary Medal lawyer and mediator in Australia by the Federal Government for Other Directorships and New York. services to business and the arts in Arts on Tour (Board Member); 2003. He was appointed a Member Government and Seymour Centre’s Artistic Advisory in the Order of Australia in 2014 Community Involvement Panel (Member); Arts NSW (Peer for significant services to arts Crown Resorts Foundation (Chair); Assessor); and Belvoir St Theatre administration, to the community Sydney Harbour Foreshore Limited Board (Secretary). and to the business and finance Authority (Chair); National Breast sector. Cancer Foundation (Council Other Directorships Member); European Australian Business Council (Member of La Caisse de depot et placement Corporate Council); Chief Executive du Quebec (Adviser); Norton Rose Women (Member); Obesity Fulbright (Advisory Board Member); Australia Limited (Non-Executive Whistles Fund Management (Board Director); Australia-Israel Chamber Member); I-MED Pty Ltd (Board of Commerce (Advisory Council); Member and Chair of Audit & Risk Menzies School of Health Research committee); iSelect Ltd (Chairman); (Ambassador); The GUT Foundation Director of GE Capital/Money (Ambassador). Australia (Hallmark companies); Director of Soils for Life (Outcomes Other Directorships Australia); Greencross Limited Aon Risk Services Australia Ltd (Director); Finance Audit Risk (Board of Advice); Snowy Retail Committee of the Environment (Red Energy; Lumo companies) Protection Authority NSW (Chair); GRACosway (Co-Chair (Independent Board Member and Non-Executive Director); & Chair). J.P. Morgan Advisory Council (Member); Crown Resorts Limited (Non-Executive Director); and Snowy Hydro Limited (Non- Executive Director).

46 DEBORAH MAILMAN PETER MASON AM JILLIAN SEGAL AM Joined the Trust 18 February 2015 Joined the Trust 1 January 2012 Joined the Trust 1 January 2014 She is currently serving her first Chair of Audit and Risk Committee Chair of People Committee. She is term to 31 December 2017. and Member of People Committee. currently serving her first term to 31 He is currently serving his second December 2016. Qualification BA term to 31 December 2017. Qualifications BA, LLB, LLM, Background Qualifications BCom (Hons), MBA, FAICD Deborah Mailman is one of Hon.DBus, FAICD Background Australia’s most highly respected Background actors. Her career in the Performing Jillian has a legal, regulatory and Arts began in 1992. Since then she Peter is a Senior Adviser to UBS governance background, having has worked extensively in theatre, Investment Bank and a Director been a partner at Allens Linklaters television and film, performing of Singapore Telecommunications and Deputy Chair at ASIC. She in productions for the Actors Ltd (Singtel). He was Chairman has also served as a Member Company for Sydney Theatre of AMP Limited from 2005-14 (a of the Federal Government’s Company, Belvoir St Theatre, Bell Director from 2003); Chairman of Remuneration Tribunal (2010-14); Shakespeare, Melbourne Theatre David Jones Limited from 2013- President of the Administrative Company, Kooemba Jdarra 14 (a Director from 2007), and Review Council (2005-09); and a Indigenous performing arts, La previously a Director of a number Member of the Major Performing Boite Theatre and Queensland of public companies. Peter has Arts Board of the Australia Council Theatre Company as well as been a Member of the Council (2002-08). Jillian received the having toured nationally and of the University of New South Centenary Medal in 2003, Member internationally. Deborah’s work has Wales; a Director of the Children’s of the Order of Australia in 2005 been recognised with many awards Hospital in Sydney, and Chairman and UNSW Alumni Award in 2005. including a Helpmann Award; of the Children’s Hospital Fund; Government and Community AACTA, Logie, AFI and Deadly and a Director of the National Involvement awards; and NAIDOC Person of the Youth Mental Health Foundation Year in 2003. (Headspace). The Observership Program (Board Member); Australia–Israel Chamber Government and of Commerce (Chair); General Sir Community Involvement John Monash Foundation (Chair Centre for International Finance since 2010, Director since 2008); and Regulation (Chairman); UBS Council of UNSW Australia (Deputy Australia Foundation (Chairman); Chancellor); Board of Garvan the University of New South Wales Institute of Medical Research Foundation (Director); The Centre (Director) and Australian War for Independent Studies (Director); Memorial Council (Member). Adara Partners' Panel (Member); Other Directorships The Great Barrier Reef Foundation (Director). ASX Limited (Director) and National Australia Bank Limited (Director). Other Directorships Taylors Wines (Chairman).

47 Business Agility Our People and

ROBERT WANNAN PHILLIP WOLANSKI AM Joined the Trust 1 January 2013 Joined the Trust 1 January 2014 Chair of Conservation Council and Member of Building and Heritage Co-Chair of Building Committee. Committee. He is currently serving He is currently serving his first term his first term to 31 December 2016. to 31 December 2015. Qualification BEc Qualifications BA (Hons), LLB, Background FAICD Phillip is the Managing Director Background of Denwol Group, a property Rob has practised as a corporate development and investment and commercial lawyer for more company. He was a Director of than 35 years and was a long- the National Institute of Dramatic standing partner of Greaves Art (2001-07) and served on the Wannan & Williams, Solicitors. He Sydney Opera House Trust Library is currently a consultant to Kemp Committee for a number of years Strang Lawyers and was that firm’s before becoming its Chairman Chairman from 2009-2013. Rob has (1992-97). Phillip was a Board served as a Non-Executive Director Member and the Vice-President of on a number of boards including Hakoah Club (1997-2006) and Head Aussie Home Loans Limited of Delegation for the Socceroos (2001-2008) and Clyde Agriculture (2004-14). Limited (2008-2012). Government and Community Government and Community Involvement Involvement Phillip was appointed a Member The Ethics Centre (Director in the Order of Australia in 2008 2013-present), Rock Eisteddfod for service to the community Challenge Foundation (Chairman and philanthropic contributions 2002-2013), Council of Knox to a range of arts, sporting and Grammar School (Chairman 2007- cultural organisations. In addition 13 and Member 2001-2013) and to his commitment to the Wolanski Knox Grammar School Foundation Foundation, he has provided Limited (Chairman 1999-2013). financial support to several and varied arts, cultural and community Other Directorships organisations. A number of companies associated Other Directorships with ANZ Bank (Director 2010-present). Football Federation Australia Limited (Director); and Governing Committee of the Temora Aviation Museum (Member).

48 Former trainees Georgia Durmush and Rachel Durmush, now Front of House casuals. Photo: Alice Harrison

SPOTLIGHT

Indigenous Traineeship

By the time Georgia and Rachel For Georgia, developing the skills Durmush became Opera House ushers required for Front of House – helping they certainly knew their subject. In patrons from all around the world, 2013, the twins took part in the Opera learning how to solve problems and House’s Indigenous Trainee Program, communicate across language barriers working in Ticketing. In 2014 they – has been an “amazing experience. came back for work experience, this And to say you work at the Opera time working in Front of House. By the House is amazing in itself,” she says. end of last year they had successfully And then there’s the art that goes applied for casual positions and today with the job. The twins name Opera they juggle their usher duties – up Australia’s La traviata and The to four times a week, depending on Australian Ballet’s Nutcracker as their commitments – with studying for favourites, though they also enjoy their Higher School Certificate at St working on children’s shows. ”We’re Andrew’s Cathedral School. still young,” says Georgia with a big The traineeship “gave us the wonderful smile. Both plan to continue working opportunity to get a job and start at the Opera House when they go to gaining experience and responsibility”, university next year, where Rachel says Rachel. hopes to study law and Georgia psychology.

49 Business Agility Our People and People and Culture

INDIGENOUS TRAINING PROGRAMS There was a significant increase in hours of safety training, from 1,321 last year to 2,240 in FY15. The The Opera House introduced its first Indigenous training covered specific risk areas such as confined Careers Day in October, welcoming 28 Year 10-12 spaces, working at height and asbestos, as well as students from nine Sydney high schools. Students leadership, risk management and contractor safety. were able to meet staff, ask questions about a diverse Nearly 30% of all training time was spent on courses range of professions and get advice about career paths. relating to height safety, attended by 81 staff members. Representatives of Resident Companies Bangarra, Tailored manual-handling training sessions were Opera Australia and Sydney Theatre Company gave attended by 97 staff. valuable career insights to the group. The students then attended a staff presentation with Opera House Chief Our FY14 safety-culture maturity review, conducted Executive Officer Louise Herron. by Deloitte, gave rise to an action plan that informed our processes in FY15. The Opera House has four Work In FY15, the fifth year of our Indigenous Work Health and Safety consultation work groups covering Experience Program, seven Indigenous school students theatre and events, the building, visitor-focused were accepted into our paid traineeship program departments and office-based staff. Each has elected and work experience was undertaken by 27 students. and trained health and safety representatives and The program focuses on skills development, building appointed senior management sponsors. In FY15 each confidence, and engagement with Indigenous artists representative met at least once each quarter with the and Opera House staff. The Opera House model is sponsor to discuss workplace safety issues and review considered best practice by the NSW Department incident and hazard reports. The CEO and Executive of Education. Team also regularly engaged with staff members to The long-term value of our traineeship program strengthen communication and understanding. Among was again demonstrated when four Indigenous other initiatives we instituted safety leadership training, students from St Andrew’s Cathedral School who had attended by 141 staff members. We also piloted an on- successfully completed traineeships in FY13 secured line safety newsletter. casual roles at the Opera House (see Spotlight, p.49). Safety-related projects included an easily installed and dismantled ramp that enables better access to the Joan WORKPLACE SYSTEMS Sutherland Theatre orchestra pit and better handling procedures. New electrical interlocking gates at the Safety is one of the Opera House’s essential values. In rear of the JST stage and organ loft area improved FY15 our commitment to work safely was supported worker safety. with increased training, funding and staff engagement, further consolidating significant successes in fostering Four resident contractor Safety Management System a strong safety culture. In June the Opera House audits were completed in FY15. executive restructure integrated safety with security This year's Opera House safety month celebrations and risk management in a single portfolio, Safety, included record attendance and new safety awards. Security and Risk. Twenty-four new workers compensation claims were LEARNING AND DEVELOPMENT lodged in FY15, the same number as last year but significantly down on the previous five years. The Leadership development was a priority in FY15. number of absent days relating to compensable claims Workshops focused on staff management, coaching reduced by 64% in the past year and has reduced year and development together with performance- on year for the past four years. Between FY13 and FY15 management processes in the public sector. Courses a 75% reduction has been recorded in total days of were offered in Communicating for Leadership absence associated with workers compensation claims Success, Coaching for Peak Performance, Leading and the number of recordable incidents was the lowest Change, Leaders Resolving Conflict and Embracing on record in FY15. These results were achieved despite Change, among others. A new 360-degree feedback fulltime equivalent staff numbers increasing 13.7% in tool was selected for use in leadership development the past five years. and will be rolled out in FY16. The Opera House workers compensation deposit More than 1100 people, including 104 from our Resident premium has reduced year on year over the past five Companies, attended 36 courses. Training in the years to almost half the amount for FY12. Three- and areas of leadership development and professional five-year hindsight premiums result in refunds. These development attracted nearly 900 participants. excellent results are attributed to prevention programs and best-practice injury management and early prevention programs.

50 The

The Learning and Development team supported the Future implementation in FY14 of the Government Sector Employment (GSE) Act 2013, developing systems to enable fulfilment of the Act’s requirements in relation to employment decisions and employee assessments. @@ Second Indigenous Careers Day The Sydney Opera House Registered Training Organisation (RTO) was offered and accepted @@ University-level Indigenous delegated authority status from our regulating body student work placements the Australian Skills Quality Authority (ASQA). This @@ Indigenous Work Experience accolade reflects the Opera House’s best practice in Program continues training and assessment. @@ Collaboration with Australia- During the Broadband Enabled Education and Skills Korea Foundation to host Services (BEESS) pilot program, From Bennelong two Korean interns who will Point to the Nation, the Opera House undertook an contribute to the Global ambitious technology upgrade and deepened our Conversations digital education expertise in content streaming, videoconferencing and project the use of the internet as a creative and educational tool. We also formed robust arts industry partnerships @@ Collaboration with the Cultural to research, trial and evaluate content and the best Office of the Chinese Consulate application of technology, and successfully delivered in Sydney to host four interns high-quality live, interactive digital tours, performances in our Sound, Marketing and and workshops. Programming departments @@ Launch of our new Wellbeing SECURITY PREPAREDNESS Program, which includes a mental health awareness The Security, Emergency Planning & Response Group program, Executive health successfully delivered a safe and secure precinct assessments, six annual health and venue for multiple events, Forecourt concerts promotions and a personalised and large-scale gatherings including New Year’s Eve health coaching pilot and Vivid Sydney celebrations. The Opera House hosted Royal visits and significant events involving @@ A 360-degree feedback international and government dignitaries, while program will be rolled out to the providing service and assistance to our Resident Executive team to assist their Companies and Artistic Associates. personal development plans We worked closely and shared information with key @@ A talent review will be emergency organisations and government stakeholders conducted and a talent at all jurisdictional levels following the increase in the development program national security threat level in September 2014. The implemented to aid attraction Opera House is a member of key security committees and retention of the best staff at State and Federal level and continues to be at the @@ Refreshed training calendar forefront of planning and preparedness for security reflects learning and needs. This includes strengthening ties, intelligence development needs identified in sharing and training opportunities with multiple State the FY15 performance review and Federal agencies and counterparts. @@ Continuation of our safety Our Business Resilience Framework includes security, culture improvement program emergency, crisis and business recovery planning and preparedness. These frameworks are underpinned by @@ Expansion of safety audit a robust risk management program. program

51 Business Agility Our People and LEADERSHIP AND Total PROFESSIONAL DEVELOPMENT PROGRAMS FY15 WORKSHOPS

Orientation 58 Tessitura Foundation 2

Role Training 50 EBMS Foundation 5

Leadership MS Office – Basics 26

Communicating for Leadership Success 89 Moodle Administration 8

Coaching for Peak Performance 63 Team

Develop Others 24 Team Building 37

Managing Poor Performance 27 DiSC Profile 19

Leading Change 58 Planning Day 53

Leaders Resolving Conflict 8 Safety

Safety Leadership 151 Risk Management 12

Creating a Service Culture 1 Fatigue Management 12

Performance Review Preparation 53 Apply Advanced Resuscitation 22

Commercial Law Code of Conduct 1 Asbestos Training 13

Professional Development Auto External Defibrillator 21

Conflict Negotiation 27 Perform CPR 21

Embracing Change 10 Incident & Investigation 33

Giving & Receiving Feedback 6 De-escalation Training 11

Making Successful Presentations 7 JST Safety Net 19

Communicate with Impact 48 Manual Handling 84

Business Writing 16 Height Safety 44

Project Management 13 Colonnade 18

Email Etiquette 23 Confined Space 4

Time Management 29 Total Attendees 1448

Customer Service: Taking the HEAT 37 Total Hours 5191

Cash Handling 1

Dealing with Intoxicated Patrons 33

Theatre Etiquette 85

AFTRS Workshop 17

Train the Trainer 7

Stress Management 22

Interview Preparation 5

Coaching 1:1 15

Systems

52 FIVE-YEAR COMPARISON OF 2015 2014 2013 2012 2011 STAFF AS AT 30 JUNE 2015

Total Permanent Staff 189 209 236 239 263

Equivalent Full-Time Permanent Staff 157.69 176.59 191.42 197.67 216.32

Total Non-Permanent Staff (includes casuals) 625 608 651 527 485

Equivalent Full-Time Non-Permanent Staff 355.62 319.97 300.96 280.79 234.49 (includes casuals)

Total Full-Time Equivalent (includes casuals) 513.31 496.55 492.38 478.46 450.81

Data is calculated over the last pay period of each financial year. Total staff numbers include current casual staff who did not work in the last pay period of the financial year.

WORK HEALTH AND Building Business Commercial Corporate SOH T&E Total Total SAFETY TRAINING Precinct Presents Attendees Hours PROGRAMS

Asbestos Training 5 8 13 33

Colonnade Access 6 11 17 38

Confined Space Entry (both 6 9 72 courses)

Electrical Test & Tag 5 0 5 40

Fatigue Management 5 14 19 28.5 Workshop

HSR Training 1 1 40

Incident Response & 19 33 82.5 Management

Injury Mgt for Managers 2 1 6 9 18

Manual Handling 14 97 194

Mental Health First Aid 1 2 4 7 112

Monitoring Contractor Safety 5 3 8 32

Perform CPR 2 0 2 4

Provide Advanced 12 10 22 176 Resuscitation

Provide First Aid 1 1 2 16

Safety Leadership 1 or 2 29 3 3 1 8 58 141 345

SHELLS ACCESS : for Leaders 0 0 0

SHELLS ACCESS : for Workers 0 0 0

WHS Risk Management 1 0 9 10 80 Supervisor

Work at Heights/ Fall arrest / 26 81 544 Rescue / Refresher

Sub Total: 104 12 23 20 20 297 476 1855

Crowd Safety 2 day seminar 385

Total: 2240

53 Business Agility Our People and Financial Overview

The Sydney Opera House receives grants from the @@ A decrease in sponsorship revenue (down $3.1m NSW Government which were distributed through from FY14) is primarily driven by a fall in non-cash the Department of Trade & Investment, Regional benefits received from external sponsors (“contra”). Infrastructure and Services until 30 June 2015, after This includes the impact of a one-off $1.2m Digital which they are distributed through the Department Transformation project that took place in FY14, of Justice. and $1.1m in media sponsorship related to the 40th Anniversary celebrations.

FINANCIALS People expenses from general operations increased by $6.7m on the prior year which includes: The group result is a surplus for the year of $4.3m, comprising: @@ Increased security costs in FY15 as a result of the heightened national terrorism public alert level. @@ Profit from general operations of $1.0m @@ An underlying 2.5% increase in the cost of wages in @@ Net surplus of $3.3m from building maintenance line with NSW Public Sector wages policy. and development, and other activities. @@ The impact of bond rate movements on the valuation of employee leave balances. GENERAL OPERATIONS @@ The realignment of the Opera House staff structure The Opera House achieved an operating profit of to match organisational strategic priorities. $1.0m in FY15. While management had anticipated a decline from FY14’s reported profit of $7.7m, the result Other operating expenses have decreased by $3.9m, was $2.5m favourable to the budgeted operating loss driven by: of ($1.5m). This was achieved through the increased @@ A reduction in one-off expenditure enabled by activity footprint of Vivid LIVE, positive growth in contra sponsorship funds. This included marketing commercial activities, and cost savings in operating expenditure related to the FY14 40th Anniversary expenses. celebrations and consultancy projects. Revenue from general operations was $110.1m in FY15, @@ Other cost reductions including savings in representing a decrease of $4.0m or 3.5% from the electricity costs ($0.7m) due to a reduction prior year. in energy needs and rates, and a decrease in Key movements within self-generated and other expenditure on consumables and minor equipment. operating revenues include: The Opera House continues to play an important role @@ Significant growth in guided tours income which in the support and development of new artists and has increased by $1m or 11.7% from the prior year, diverse arts forms. Overall 1,941 performances were particularly in Mandarin tours (up $0.4m from presented to audiences of 1,445,553, an increase of FY14), and tour packages. 4.1% over the prior year. @@ A $0.7m rise in venue hire earnings, driven by Expenditure on Opera House programming activities active venue hire management leading to improved was $32.7m, which includes $15.4m to external artists utilisation of venues, and the increased activation of and presenters, as well as marketing and administrative external spaces including the Northern Broadwalk costs, and the value attributed to the Opera House’s and the Forecourt. own venues and resources. After taking into account related production income, the Opera House’s net @@ Increased food and beverage revenue of $0.3m. investment was $7.0m, representing a subsidy ratio This is 3.0% growth on FY14, and is $1.2m of 21.4%. favourable to budget. This result was achieved through a combination of improved trading activity, advantageous new operator contract terms, and shorter than anticipated closure periods.

54 BUILDING DEVELOPMENT AND Building development expenditure totalled $27.7m, MAINTENANCE AND OTHER of which $24.7m was capitalised. The Vehicle Access and Pedestrian Safety (VAPS) project entered its fifth Funding for building maintenance and development and final year of construction, with funding for the activities is recognised as income on receipt, and project fully drawn down in prior years. Work has also expenditure as activities occur. Building works may progressed on the Lifts and Escalators project. Both be recognised as expenses or create capital assets, projects are expected to be completed and in use by depending on the nature of the activity. December 2015. The net surplus of $3.3m from building maintenance The FY15 building maintenance grant of $25.9m is and development, and other activities, was driven by: lower than previous years due to $6.9m of FY15 funds @@ Recognition of $17.9m in non-recurrent grant being received in advance in FY14. The normalised funding for building development activities. FY15 grant represents 1.4% of the Opera House total fixed assets, and 1.6% of the Opera House building’s @@ Depreciation and amortisation expense of $10.4m. value. This compares with total NSW Government @@ Other building development and maintenance expenditure on asset maintenance in FY15 equivalent to expenditure. 1.8% of the estimated total built asset holdings as at 30 June 2015. The nature and timing of building activities drive the financial result. Building maintenance and related expenditure totalled $32.4m, of which $4.5m was capitalised. Completed To date, building maintenance and development has works in the year include the main switchboard been primarily funded by government grants and substation design and build, box office lighting and associated interest revenues earned. The $43.6m sprinklers upgrade, and a large number of safety Theatre Machinery Project (TMP) commenced in June upgrades. 2015 and will be self-funded by the Opera House. The Opera House has also been successful in raising funds The Opera House has implemented a range of business from external grants and donors to support specific transformation initiatives across the organisation. building and conservation research projects. These initiatives have resulted in both operating and financial gains. Sustainable purchasing decisions have The government grants received for building reduced electricity usage in the building, resulting in development capital projects in FY15 totalled $17.9m, significant cost savings. The Opera House has also which comprised the Lift and Escalators Upgrade reinforced a strong safety culture. This has resulted Project ($4.2m) and Renewal Framework ($13.7m). in a reduction in workplace injuries and a decrease in Building development projects were also funded by workers compensation premiums from $1.1m in FY12 to interest earnings and other donations received ($0.9m). $0.6m in FY15.

55 Business Agility Our People and

2015 2014 FINANCIAL RESULTS $'000 $'000

General Operations

Revenues:

NSW Treasury endowment and other funding 13,622 15,792

Self-generated revenue 96,466 98,261

Total Revenue – General Operations 110,088 114,053

Expenses:

People expenses (53,207) (46,550)

Other expenses (55,859) (59,797)

Total Expenses – General Operations (109,066) (106,347)

Profit / (Loss) from General Operations 1,022 7,706

Other Activities

Revenues:

Building maintenance – government grant 25,853 38,833

Building development – government grant and other funding 18,800 25,726

Total Revenue – Other Activities 44,653 64,559

Expenses:

Depreciation and amortisation (10,440) (12,346)

People and other expenses (30,980) (33,554)

Total Expenses – Other Activities (41,420) (45,900)

Profit / (Loss) from Other Activities 3,233 18,659

Net Result for the year as per the 4,255 26,365 Audited Financial Report Income Statement

Note: The above figures are stated inclusive of internal revenue and costs which are eliminated in the audited Financial Statements. Please refer to p.58 for a reconciliation of the Financial Overview to the audited Financial Statements.

56 2015 2014 SELF-GENERATED REVENUE $'000 $'000

Gross box office 24,082 24,466

Theatre services 19,577 19,549

Venue hire 11,883 11,167

Food and beverage 10,094 9,796

Sponsorship 5,320 8,425

Tours 9,314 8,343

Booking fees and charges 6,454 6,492

Other 9,742 10,023

Total Self-Generated Revenue 96,466 98,261

2015 2014 OTHER OPERATING EXPENSES $'000 $'000

Artist fees and presentation expenses 25,187 25,282

Publicity and advertising 6,323 6,962

Utilities and cleaning 5,572 6,241

Other fees for services 4,983 5,977

Administration expenses 4,933 4,760

Consumables and minor equipment 3,479 4,030

Other 5,382 6,545

Total Other Operating Expenses 55,859 59,797

57 Business Agility Our People and

RECONCILIATION OF FINANCIAL OVERVIEW 2015 2014 TO AUDITED FINANCIAL STATEMENTS $'000 $'000

Financial overview revenue

General operations 110,088 114,053

Other activities 44,653 64,559

Total Financial Overview Revenue 154,741 178,612

Less:

Internal eliminations (10,297) (9,225)

Total Revenue per Audited Financial Statements 144,444 169,387

Financial overview expenses

General operations (109,066) (106,347)

Other activities (41,420) (45,900)

Less:

Other gain / (loss) 52 (10)

Total Financial Overview Expenses (150,434) (152,257)

Less:

Internal eliminations 10,297 9,225

Total Expenses per Audited Financial Statements (140,137) (143,032)

58 SPOTLIGHT

All About Women Satellite Event

Live streaming linked the Opera House with Parramatta audiences for two All About Women sessions

The Opera House’s All About Women with Annabel Crabb and Richard Festival was founded as a platform for Glover. Riverside Program Manager the issues that matter most to women. Michelle Kotevski says attendees The third festival, held in March 2015, were highly engaged with the pilot was not only the most successful ever program. “It was really positive. Most on site, drawing a record crowd for stayed for both sessions and talked the festival to the Opera House, it also over coffee and biscuits about the commanded the widest audience yet issues that arose. Our audiences beyond the Opera House precinct. were beside themselves that this was Satellite All About Women festival made available to them. They want events were held for the first time from this content here.” That response led Parramatta to Albury-Wodonga on the Riverside to take two live-streamed NSW-Victorian border, Queensland sessions from September’s Festival and New Zealand. of Dangerous Ideas too: Tariq Ali on The Twilight of Democracy and Helen Parramatta’s Riverside Theatres was Joyce on The Right to Die. the venue for two live-streamed All About Women sessions, How to Be a Feminist, with Germaine Greer, Anita Sarkeesian, Tara Moss and others; and Can Men’s Roles Change?, a panel on work-life balance and families

59 Financial Statements

Sydney Opera House

60 62 Statement in accordance with Section 41C

63 Independent Auditor’s Report

64 Statement of Profit or Loss

65 Statement of Comprehensive Income

66 Statement of Financial Position

67 Statement of Changes in Equity

69 Statement of Cash Flows

70 Notes to and forming part of the Financial Statements

70 1. Summary of Significant Accounting Policies

79 2. Financial Risk Management

81 3. Revenue

82 4. Expenses

84 5. Other Gains / (Losses)

85 6. Trustees’ Remuneration

85 7. Cash and Cash Equivalents

86 8. Trade and Other Receivables

86 9. Prepayments

87 10. Inventory – Held for Distribution

88 11. Property, Plant and Equipment

89 12. Intangible Assets

90 13. Fair Value Measurement of Non-Financial Assets

91 14. Trade and Other Payables

92 15. Deferred Revenue

92 16. Personnel Services Payable

93 17. Provisions

94 18. Other Liabilities

94 19. Employee Defined Benefits

101 20. Derivatives used for hedging

102 21. Financial Instruments

109 22. Fundraising and Bequests

111 23. Commitments

112 24. Contingent Liabilities and Assets

112 25. Events After Reporting Date

112 26. Notes to the Statement of Cash Flows

61 Statements Financial

Statement in accordance with Section 41c of the Public Finance and Audit Act, 1983

SYDNEY OPERA HOUSE TRUST Pursuant to Section 41C of the Public Finance and Audit Act, 1983, and in accordance with a resolution of the Sydney Opera House Trust, we state that: 1. In our opinion, the accompanying financial statements exhibit a true and fair view of the financial position of the Sydney Opera House Trust as at 30 June 2015, and financial performance for the year then ended. 2. The financial statements have been prepared in accordance with the provisions of thePublic Finance and Audit Act, 1983, the Public Finance and Audit (General) Regulation 2015 and the Treasurer’s Directions. Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.

Nicholas Moore Chair, Sydney Opera House Trust

Peter Mason AM Chair, Audit and Risk Committee / Trustee

Louise Herron AM Chief Executive Officer

Natasha Collier Chief Financial Officer

Sydney 1 October 2015

62 Independent Auditor’s Report

SYDNEY OPERA HOUSE TRUST To Members of the New South Wales Parliament I have audited the accompanying financial statements of Sydney Opera House Trust (the Trust), which comprise the statements of financial position as at 30 June 2015, the statements of profit or loss, the statements of comprehensive income, the statements of changes in equity and the statements of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information of the Trust and the consolidated entity. The consolidated entity comprises the Trust and the entities it controlled at the year’s end or from time to time during the financial year. Opinion In my opinion, the financial statements: @@ give a true and fair view of the financial position of the Trust and the consolidated entity as at 30 June 2015, and of their financial performance and cash flows for the year then ended in accordance with Australian Accounting Standards @@ are in accordance with section 41B of Public Finance and Audit Act 1983 (PF&A Act) and the Public Finance and Audit Regulation 2015. My opinion should be read in conjunction with the rest of this report. The Trustees’ Responsibility for the Financial Statements The Trustees are responsible for preparing financial statements that give a true and fair view in accordance with Australian Accounting Standards and the PF&A Act, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with Australian Auditing Standards. Those standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including an assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Trustees, as well as evaluating the overall presentation of the financial statements. I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. My opinion does not provide assurance: @@ about the future viability of the Trust or consolidated entity @@ that they have carried out their activities effectively, efficiently and economically @@ about the effectiveness of the internal control @@ about the security and controls over the electronic publication of the audited financial statements on any website where they may be presented @@ about any other information, that may have been hyperlinked to/from the financial statements. Independence In conducting my audit, I have complied with the independence requirements of the Australian Auditing Standards and other relevant ethical pronouncements. The PF&A Act further promotes independence by: @@ providing that only Parliament, and not the executive government, can remove an Auditor-General @@ mandating the Auditor-General as auditor of public sector agencies but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their role by the possibility of losing clients or income.

Karen Taylor Director, Financial Audit Services 2 October 2015, SYDNEY 63 Statements Financial Beginning of Audited Financial Statements

Sydney Opera House Statement of Profit or Loss for the year ended 30 June 2015

Consolidated Parent

2015 2014 2015 2014 NOTE $’000 $’000 $’000 $’000

Revenue

Sale of goods and services 3(a) 75,447 74,447 75,447 74,447

Investment revenue 3(b) 2,819 3,799 2,819 3,799

Sponsorship revenue 3(c) 5,320 8,425 5,320 8,425

Donation revenue 1,812 1,610 1,812 1,610

Other grants 2,129 4,575 2,129 4,575

Government contributions 3(d) 56,917 76,531 56,917 76,531

Total Revenue 144,444 169,387 144,444 169,387

Expenses

Employee-related expenses 4(a) (53,378) (15,453) – –

Personnel services expenses 4(b) – (30,935) (53,320) (46,100)

Other expenses 4(c) (45,925) (50,640) (45,925) (50,640)

Maintenance expense 4(d) (30,394) (33,657) (30,394) (33,657)

Depreciation, amortisation and make good 4(e) (10,440) (12,346) (10,440) (12,346)

Finance costs 4(f) – (1) – (1)

Total Expenses (140,137) (143,032) (140,079) (142,744)

Other gain / (loss) 5 (52) 10 (52) 10

Other Gains / (Losses) (52) 10 (52) 10

Net Result 4,255 26,365 4,313 26,653

The accompanying notes form part of these financial statements.

64 Sydney Opera House Statement of Comprehensive Income for the year ended 30 June 2015

Consolidated Parent

2015 2014 2015 2014 NOTE $’000 $’000 $’000 $’000

Net Result 4,255 26,365 4,313 26,653

Other Comprehensive Income

Items that will not be reclassified to net result

Net increase / (decrease) in property, plant 11 1,289 36,238 1,289 36,238 and equipment revaluation surplus

Defined benefit plan re-measurements 19 58 288 – –

1,347 36,526 1,289 36,238

Items that may be reclassified to net result

Unrealised (losses) / gains on forward 20 62 (298) 62 (298) exchange contracts

Other Comprehensive Income 1,409 36,228 1,351 35,940

Total Comprehensive Income 5,664 62,593 5,664 62,593

The accompanying notes form part of these financial statements.

65 Statements Financial Sydney Opera House Statement of Financial Position as at 30 June 2015

Consolidated Parent

2015 2014 2015 2014 NOTE $’000 $’000 $’000 $’000

Assets

Current Assets

Cash and cash equivalents 7 7 7,121 98,426 7 7,121 98,426

Trade and other receivables 8 7,273 5,952 8,477 7,679

Prepayments 9 2,408 3,293 675 1,126

Derivative financial instruments 20 648 1,416 648 1,416

Inventory 10 31 58 31 58

Total Current Assets 87,481 109,145 86,952 108,705

Non-Current Assets

Property, plant and equipment 11 2,361,870 2,338,345 2,361,870 2,338,345

Intangible assets 12 1,168 1,237 1,168 1,237

Total Non-Current Assets 2,363,038 2,339,582 2,363,038 2,339,582

Total Assets 2,450,519 2,448,727 2,449,990 2,448,287

Liabilities

Current Liabilities

Trade and other payables 14 15,041 21,984 12,059 21,596

Deferred revenue 15 6,113 5,722 6,113 5,722

Personnel services payable 16 – – 17,508 12,573

Provisions 17 15,154 12,860 99 235

Other 18 206 – 206 –

Derivative financial instruments 20 621 1,451 621 1,451

Total Current Liabilities 3 7,1 35 42,017 36,606 41,577

Non-Current Liabilities

Personnel services payable 16 – – 1,679 1,703

Provisions 17 1,964 1,703 285 –

Other 18 749 – 749 –

Total Non-Current Liabilities 2,713 1,703 2,713 1,703

Total Liabilities 39,848 43,720 39,319 43,280

Net Assets 2,410,671 2,405,007 2,410,671 2,405,007

Equity

Accumulated funds 390,334 385,248 390,334 385,248

Reserves 2,020,337 2,019,759 2,020,337 2,019,759

Total Equity 2,410,671 2,405,007 2,410,671 2,405,007

The accompanying notes form part of these financial statements.

66 Sydney Opera House Statement of Changes in Equity for the year ended 30 June 2015

Asset Accumulated Revaluation Hedge Funds Reserve Reserve Total CONSOLIDATED NOTE $’000 $’000 $’000 $’000

Balance at 1 July 2014 385,248 2,019,794 (35) 2,405,007

Net Result 4,255 – – 4,255

Other Comprehensive Income

Net increase in property, plant and equipment 11 – 1,289 – 1,289

Defined benefit plan re-measurements 19 58 – – 58

Transfers on disposals 773 (773) – –

Unrealised gain / (loss) 20 – – 62 62

Total other comprehensive income / 831 516 62 1,409 (expense)

Total Comprehensive Income / (Expense) for 5,086 516 62 5,664 the year

Balance at 30 June 2015 390,334 2,020,310 27 2,410,671

Balance at 1 July 2013 356,307 1,985,844 263 2,342,414

Net Result 26,365 – – 26,365

Other Comprehensive Income

Net increase in property, plant and equipment 11 – 36,238 – 36,238

Defined benefit plan re-measurements 19 288 – – 288

Transfers on disposals 2,288 (2,288) – –

Unrealised gain / (loss) 20 – – (298) (298)

Total other comprehensive income / 2,576 33,950 (298) 36,228 (expense)

Total Comprehensive Income / (Expense) for 28,941 33,950 (298) 62,593 the year

Balance at 30 June 2014 385,248 2,019,794 (35) 2,405,007

The accompanying notes form part of these financial statements.

67 Statements Financial

Sydney Opera House Statement of Changes in Equity for the year ended 30 June 2015

Asset Accumulated Revaluation Hedge Funds Reserve Reserve Total PARENT NOTE $’000 $’000 $’000 $’000

Balance at 1 July 2014 385,248 2,019,794 (35) 2,405,007

Net Result 4,313 – – 4,313

Other Comprehensive Income

Net increase in property, plant and equipment 11 – 1,289 – 1,289

Transfers on disposals 773 (773) – –

Unrealised gain / (loss) 20 – – 62 62

Total other comprehensive income / 773 516 62 1,351 (expense)

Total Comprehensive Income / (Expense) for 5,086 516 62 5,664 the year

Balance at 30 June 2015 390,334 2,020,310 27 2,410,671

Balance at 1 July 2013 356,307 1,985,844 263 2,342,414

Net Result 26,653 – – 26,653

Other Comprehensive Income

Net increase in property, plant and equipment 11 – 36,238 – 36,238

Transfers on disposals 2,288 (2,288) – –

Unrealised gain / (loss) 20 – – (298) (298)

Total other comprehensive income / 2,288 33,950 (298) 35,940 (expense)

Total Comprehensive Income / (Expense) for 28,941 33,950 (298) 62,593 the year

Balance at 30 June 2014 385,248 2,019,794 (35) 2,405,007

The accompanying notes form part of these financial statements.

68 Sydney Opera House Statement of Cash Flows for the year ended 30 June 2015

Consolidated Parent

2015 2014 2015 2014 NOTE $’000 $’000 $’000 $’000

Cash flows from operating activities

Receipts

Receipts from operations 75,705 82,692 75,705 82,692

Interest received 3,466 3,761 3,466 3,761

Cash sponsorship and donations received 4,684 4,913 4,684 4,913

Cash received from Government 56,917 76,531 56,917 76,531

Other 13 – 13 –

Total receipts 140,785 1 6 7,897 140,785 1 6 7,897

Payments

Payments to suppliers, employees and (126,584) (125,024) (126,584) (125,024) personnel service providers

Other – (3) – (3)

Total payments (126,584) (125,027) (126,584) (125,027)

Net cash inflows from operating activities 26 14,201 42,870 14,201 42,870

Cash flows from investing activities

Purchases of property, plant and equipment (35,506) (52,911) (35,506) (52,911)

Proceeds from sale of property, plant and – 118 – 118 equipment

Net cash outflows from investing activities (35,506) (52,793) (35,506) (52,793)

Net increase / (decrease) in cash (21,305) (9,923) (21,305) (9,923)

Opening cash and cash equivalents 98,426 108,349 98,426 108,349

Closing cash and cash equivalents 7 7 7,1 21 98,426 7 7,1 21 98,426

The accompanying notes form part of these financial statements.

69 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

The methods used for measuring fair value are Note 1 discussed further below. Summary of Significant The Opera House has kept proper accounts and records in relation to all of its operations Accounting Policies in accordance with Section 41(1) of the Public Finance and Audit Act, 1983. (a) REPORTING ENTITY Judgements, key assumptions and estimations The consolidated financial statements for the management has made are disclosed in the year ended 30 June 2015 comprise Sydney relevant notes to the financial statements. Opera House Trust (the Parent) and its Figures shown in the financial statements controlled entity, Sydney Opera House Trust have been rounded to the nearest $1,000 Staff Agency (the Agency), together referred to and expressed in Australian currency, unless as the “Consolidated Entity”, or “Sydney Opera indicated otherwise. House”, or “the Opera House”. The Parent is a not-for-profit NSW Government (c) STATEMENT OF COMPLIANCE entity, classified as a Public Trading Enterprise (PTE) that provides a broad range of cultural, The financial statements and notes comply with tourism, community and commercial Australian Accounting Standards that include experiences to people from Sydney, NSW, Australian Accounting Interpretations. Australia and around the world. No dividends are paid to Government and surplus from operations support cultural and community activities (d) BASIS OF CONSOLIDATION within the performing arts. The Opera House Subsidiaries are entities controlled by the undertakes public fundraising to support a range Consolidated Entity. The financial statements of programming and community activities. The of subsidiaries are included in the consolidated Opera House has determined that it is a not- financial statements from the date on which for-profit entity and applies the requirements of control commences until the date on which not-for-profit accounting standards. control ceases. The Agency is a Public Service executive agency Intra-group balances and transactions, and any under Schedule 1, Part 2 of the Government unrealised income and expenses arising from Sector Employment Act 2013 no. 40. The Agency intra-group transactions, are eliminated. commenced operations on 24 February 2014 and assumed responsibility from the Department of Trade and Investment, Regional Infrastructure (e) INSURANCE and Services (DTIRIS) for the employees (and The Consolidated Entity’s insurance activities are employee-related liabilities) responsible for primarily conducted through the NSW Treasury provision of personnel services to the Parent. Managed Fund Scheme of self-insurance for The Agency’s sole objective is to provide Government agencies. The expense (premium) is personnel services to the Parent. determined by the fund manager based on past These financial statements for the year ended 30 claim experience. June 2015 have been authorised for issue by the Trust on 1 October 2015. (f) ACCOUNTING FOR GOODS AND SERVICES TAX (GST) (b) BASIS OF PREPARATION Revenues, expenses and assets are recognised The financial statements are general-purpose net of the amount of GST, except: financial statements, which have been prepared @@ the amount of GST incurred by the on an accrual basis and in accordance with: Consolidated Entity as a purchaser that is @@ applicable Australian Accounting Standards not recoverable from the Australian Taxation (which include Australian Accounting Office (ATO) is recognised as part of the cost Interpretations); of acquisition of an asset or as part of an item of expense; and @@ the requirements of the Public Finance and Audit Act 1983 and the Public Finance and @@ receivables and payables are stated with the Audit Regulation 2015; and amount of GST included. @@ other applicable financial reporting Cash flows are included in the statement of directions issued by the Treasurer. cash flows on a gross basis. However, the GST components of cash flows arising from investing Property, plant and equipment, collection assets and financing activities that are recoverable and financial assets and liabilities at "fair value from, or payable to, the ATO are classified as through profit or loss" are measured at fair value. operating cash flows. Other financial statement items are prepared on an accrual basis and based on historical costs.

70 (g) INCOME RECOGNITION Sponsorship revenue is recognised as income by the Consolidated Entity in accordance with the Income is measured at the fair value of the terms and conditions of the signed sponsorship consideration or contribution received or contracts, which specify the timing and form of receivable. Revenues are recognised in the sponsorship benefits that the Consolidated accordance with AASB 118 Revenue and AASB Entity is entitled to. Sponsorship benefits may be 1004 Contributions. Additional comments received by way of cash, or of non-cash benefits regarding the accounting policies for the known as “contra sponsorship”. The respective recognition of income are discussed below. goods and services related to this income are reflected in the appropriate expense or asset (I) SALE OF GOODS accounts. The values of such sponsorships are Revenue from the sale of goods is recognised as brought to account on the proviso that a fair revenue when the Consolidated Entity transfers value for the sponsorships could be ascertained. the significant risks and rewards of ownership of the assets. In cases where the Consolidated (V) GOVERNMENT CONTRIBUTIONS Entity acts as an agent, the Consolidated Entity Government contributions in the form of does not have exposure to the significant grants are recognised as revenue when the risks and rewards associated with the sale of Consolidated Entity obtains control over goods and in such cases, the revenue earned is the funds, in accordance with AASB 1004 reported on a net basis. Contributions, paragraph 12. Control over Government contributions is obtained upon the (II) RENDERING OF SERVICES receipt of cash. Government contributions are Revenue is recognised when the service granted in the form of operating endowment, is provided or by reference to the stage of maintenance and building development funding. completion (based on labour hours incurred to date). In cases where the Consolidated Entity acts as an agent, the Consolidated Entity does (h) ASSETS not have exposure to the significant risks and rewards associated with the sale of goods and (I) ACQUISITION OF ASSETS in such cases, the revenue earned is reported Assets acquired are initially recognised at cost. on a net basis. Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration (III) INVESTMENT, RENTAL given to acquire the asset at the time of its AND ROYALTY INCOME acquisition or construction or, where applicable, Interest revenue is recognised using the effective the amount attributed to that asset when interest method as set out in AASB 139 Financial initially recognised in accordance with the Instruments: Recognition and Measurement. specific requirements of other Australian Rental revenue is recognised in accordance with Accounting Standards. AASB 117 Leases on a straight-line basis over the lease term. Royalty revenue is recognised Assets acquired at no cost, or for nominal in accordance with AASB 118 Revenue on an consideration, are initially recognised at their accrual basis in accordance with the substance fair value at the date of acquisition. of the relevant agreement. Fair value is the price that would be received to sell an asset in an orderly transaction between (IV) SPONSORSHIP, DONATIONS market participants at the measurement date. AND OTHER GRANTS Grants and other contributions are generally Where payment for an asset is deferred beyond recognised as revenue when the Consolidated normal credit terms, its cost is the cash price Entity obtains control over the assets comprising equivalent, i.e. the deferred payment amount is the grants and contributions. Control over grants effectively discounted over the period of credit. and contributions is normally obtained when the obligations relating to the receipt have been met. (II) CAPITALISATION THRESHOLD Property, plant and equipment and intangible Revenue arising from donations is recognised assets costing $5,000 and above individually or when all of the following conditions are satisfied: forming a group of parts or components costing @@ the Consolidated Entity has obtained more than $5,000 are capitalised on acquisition. control of the donation or the right to receive the donation; (III) REVALUATION OF PROPERTY, PLANT AND EQUIPMENT @@ it is probable that economic benefits Physical non-current assets are valued in comprising the donation will flow to the accordance with the “Valuation of Physical Consolidated Entity; and Non-Current Assets at Fair Value” Policy and @@ the amount of the donation can be Guidelines Paper (TPP 14-01). This policy adopts measured reliably. fair value in accordance with AASB 13 Fair Value Measurement, AASB 116 Property, Plant and These conditions are typically satisfied on receipt. Equipment and AASB 140 Investment Property.

71 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Property, plant and equipment is measured at cost approach, income approach) that maximise the highest and best use by market participants relevant observable inputs and minimise that is physically possible, legally permissible unobservable inputs. Also, refer Note 13 for and financially feasible. The highest and best use further information regarding fair value. must be available at a period that is not remote The Consolidated Entity revalues art collection, and take into account the characteristics of the plant and equipment at least every five years asset being measured, including any socio- or with sufficient regularity to ensure that the political restrictions imposed by government. carrying amount of each asset in the class In most cases, after taking into account these does not differ materially from its fair value considerations, the highest and best use is at reporting date. Land, Building and Building the existing use. In limited circumstances, Services are revalued at least every 3 years the highest and best use may be a feasible or with sufficient regularity to ensure that the alternative use, where there are no restrictions carrying amount of each asset in the class on use or where there is a feasible higher does not differ materially from its fair value at restricted alternative use. reporting date. Fair value of property, plant and equipment is A summary of asset category revaluations is based on a market participants’ perspective, as follows: using valuation techniques (market approach,

Asset category Independent valuer Minimum valuation Last valuation date frequency

Land NSW Land and Property 3 years 22 March 2013 Information Valuation Services

Building and building Rider Levett Bucknall 3 years 28 February 2014 services

Plant and equipment Rodney Hyman Asset 5 years 30 June 2011 Services

Art collection Sue Hewitt 5 years 31 March 2015

In addition, an annual assessment is performed those assets are credited to the asset accounts to ensure that the carrying value of property, to which they relate. The net asset accounts are plant and equipment is not materially different then increased or decreased by the revaluation from fair value. Management is of the opinion increments or decrements. that the carrying values of land, building and Revaluation increments are credited directly building services, plant and equipment and the to the revaluation surplus, except that, to the art collection do not differ significantly from extent that an increment reverses a revaluation their fair value at 30 June 2015. decrement in respect of that class of asset The value of work in progress represents capital previously recognised as an expense in the net works not completed at 30 June 2015. result, the increment is recognised immediately as revenue in the net result. Non-specialised assets with short useful lives are measured at depreciated historical cost, Revaluation decrements are recognised as a surrogate for fair value. The entity has immediately as expenses in the net result, assessed that any difference between fair except that, to the extent that a credit balance value and depreciated historical cost is unlikely exists in the revaluation surplus in respect of the to be material. same class of assets, they are debited directly to the revaluation surplus. When revaluing non-current assets by reference to current prices for assets newer than those As a not-for-profit entity, revaluation increments being revalued (adjusted to reflect the present and decrements are offset against one another condition of the assets), the gross amount within a class of non-current assets, but and the related accumulated depreciation are not otherwise. separately restated. Where an asset that has previously been For other assets valued using other valuation revalued is disposed of, any balance remaining techniques, any balances of accumulated in the revaluation surplus in respect of that asset depreciation at the revaluation date in respect of is transferred to accumulated funds.

72 (IV) IMPAIRMENT OF PROPERTY, The implementation guidance for not-for-profit PLANT AND EQUIPMENT public sector entities that accompanies AASB As a not-for-profit entity with no cash 116 Property, Plant and Equipment states the generating units, impairment under AASB 136 nature of many heritage and cultural assets may Impairment of Assets is unlikely to arise. AASB not have limited useful lives and therefore may 136 modifies the recoverable amount test to not be subject to depreciation. This is the case the higher of fair value less costs to sell and for the Opera House building and art collection. depreciated replacement cost. This means that, The Opera House building is considered a for an asset already measured at fair value, heritage asset with an extremely long useful impairment can only arise if selling costs are life. Consequently, the useful life and the net material. Selling costs are deemed immaterial. amount to be recovered at the end of the useful Building and building services are measured at life of the building and building services cannot fair value as at 30 June 2015. Management have be reliably measured. Depreciation is therefore assessed the building for impairment at balance not recognised for these assets. The decision date and determined that it is not functionally not to recognise depreciation for these assets impaired. However all buildings require a is reviewed annually. In 2014-15, management is long-term maintenance plan. Significant future of the opinion that depreciation should not be maintenance works are being considered as recognised on these assets. part of the Opera House’s renewal planning, The Opera House art collection is a cultural and require further investigation and scoping. asset. Certain heritage assets including original These works will be required to ensure that the artworks and collections may not have a limited building does not become impaired in the future. useful life because appropriate curatorial and (V) INTANGIBLE ASSETS preservation policies are adopted. Such assets are not subject to depreciation. The decision The intangible assets held by the Consolidated not to recognise depreciation for these assets Entity comprise software held for internal use is reviewed annually. In 2014-15, management is and recognised initially at cost. of the opinion that depreciation should not be Intangible assets are subsequently measured recognised on these assets. at fair value only if there is an active market. Depreciation and amortisation rates on other As there is no active market for the Consolidated assets are: Entity’s intangible assets, the assets are carried at cost less any accumulated amortisation. The useful lives of the Consolidated Entity’s Category of assets Rate of intangible assets are assessed to be finite, depreciation % and are amortised on a straight-line basis over 5 years. Computer hardware 10, 20 and 33.3

All intangible assets were assessed for Computer software 20 impairment as at 30 June 2015. No intangible assets were found to be impaired. Plant and equipment Range between 1 and 33.3 (VI) DEPRECIATION AND AMORTISATION Forklifts and vehicle 10 Depreciation is provided on certain property, plant and equipment. Depreciation is Grand organ 0.5 calculated on a straight-line basis to write off the depreciable amount of each asset over its Leasehold improvements 10 expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful (VII) MAINTENANCE life, whichever is the shorter, using the straight- line method. The estimated useful lives, residual Day-to-day servicing costs or maintenance are values and depreciation method are reviewed at charged as expenses as incurred, except where the end of each annual reporting period. they relate to the replacement of a part or component of an asset, in which case the costs, All material identifiable components of assets are if over $5,000 are capitalised and depreciated. depreciated separately over their useful lives. Work-in-progress (WIP) does not attract (VIII) LEASED ASSETS depreciation. Once a capital work is completed A distinction is made between finance leases and in operation, the associated WIP balance that effectively transfer from the lessor to the is recognised as an asset and subsequently lessee substantially all the risks and benefits depreciated. incidental to ownership of the leased assets, and operating leases under which the lessor Land is not a depreciable asset. effectively retains all such risks and benefits. The Consolidated Entity has no finance leases.

73 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Operating lease payments are recognised Entity’s key management personnel. as expenses on a straight-line basis over the The Treasury Risk Management Policy lease term. requires management to report on all The cost of improvement to or on leasehold investments, including the amount, yield, property is capitalised and disclosed as maturity, counterparty credit rating and total leasehold improvements and amortised over investments with counterparty. Exposure the unexpired period of the lease term. limits per counterparty are set to minimise the Consolidated Entity’s risk. Leasehold decommissioning costs have been capitalised and depreciated where the Any Hour-Glass investment facilities held by Consolidated Entity is contractually bound to the Consolidated Entity are short-term unit restore the leased premises upon lease expiry. trust investment funds managed by the NSW The asset and provision for decommissioning Treasury Corporation (TCorp). The Consolidated costs represents the present value of the Entity has been issued with a number of units in Consolidated Entity’s best estimate of the future TCorp’s Hour-Glass Cash Facility Trust, based sacrifice of economic benefits that will be on the amount of the deposit and the unit value required to restore the leased premises to their for the day. original condition. The estimate has been made The movement in the fair value of the Hour-Glass based on market value on commercially leased investment Facilities incorporates distributions property. The unexpired terms of the premises received as well as unrealised movement in lease range from 1 month to 5 years. fair value and is reported in the line item "investment revenue. (IX) RECEIVABLES Receivables are non-derivative financial assets Non-derivative financial assets with fixed or with fixed or determinable payments that are determinable payments and fixed maturity not quoted in an active market. These financial that the Consolidated Entity has the positive assets are recognised initially at fair value, intention and ability to hold to maturity usually based on the transaction cost or face are classified as “held-to-maturity”. These value. Subsequent measurement is at amortised investments are measured at amortised cost cost using the effective interest method, less an using the effective interest method. Changes allowance for any impairment of receivables. are recognised in the net result for the year Any changes are recognised in the net result when impaired, derecognised or though the for the year when impaired, derecognised or amortisation process. through the amortisation process. The fair value of investments that are traded at Short-term receivables with no stated interest fair value in an active market is determined by rate are measured at the original invoice amount reference to quoted current bid prices at the where the effect of discounting is immaterial. close of business on reporting date.

(X) INVENTORIES (XII) IMPAIRMENT OF FINANCIAL ASSETS Inventories held for distribution are stated at All financial assets, except those measured at cost, adjusted when applicable for any loss of fair value through profit or loss, are subject to service potential. A loss of service potential is an annual review for impairment. An allowance identified and measured based on the existence for impairment is established when there is of a current replacement cost that is lower than objective evidence that the Consolidated Entity the carrying amount. Cost is calculated using will not be able to collect all amounts due. the weighted average cost method. For financial assets carried at amortised cost, the amount of the allowance is the difference (XI) INVESTMENTS between the asset’s carrying amount and the Investments are initially recognised at fair value present value of estimated future cash flows, plus, in the case of investments not at fair value discounted at the effective interest rate. The through profit or loss, transaction costs. amount of the impairment loss is recognised in The Consolidated Entity determines the the net result for the year. classification of its financial assets at initial Any reversals of impairment losses are reversed recognition and, when allowed and appropriate, through the net result for the year, where there re-evaluates this at each financial year-end. is objective evidence. Reversals of impairment The Hour-Glass investment facilities are losses of financial assets carried at amortised designated at fair value through profit or loss cost cannot result in a carrying amount that using the second leg of the fair value option exceeds what the carrying amount would have under AASB 139.9(b)(ii). These financial assets been had there not been an impairment loss. are managed and their performance is evaluated on a fair value basis, in accordance with a (XIII) DERECOGNITION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES documented risk management strategy, and information about these assets is provided A financial asset is derecognised when the internally on that basis to the Consolidated contractual rights to the cash flows from the

74 financial assets expire; or if the Consolidated prior to the completion of this transaction and Entity transfers the financial asset: are classified as personnel services expenses in these financial statements. @@ where substantially all the risks and rewards have been transferred; or Subsequently, the payments to personnel and related obligations are performed in @ where the Consolidated Entity has not @ the Agency’s name and are classified as transferred substantially all the risks and employee-related expenses in the consolidated rewards, if the Consolidated Entity has not financial statements. retained control. Where the Consolidated Entity has neither (II) PERSONNEL SERVICES, SALARIES AND transferred nor retained substantially all the risks WAGES, ANNUAL LEAVE, SICK LEAVE AND ON-COSTS and rewards or transferred control, the asset is recognised to the extent of the Consolidated As a result of the employment arrangement with Entity’s continuing involvement in the asset. DTIRIS that was in place up to and including 23 February 2014, all personnel services provisions A financial liability is derecognised when the were calculated as part of the personnel services obligation specified in the contract is discharged and stated as a liability to the service provider, or cancelled or expires. DTIRIS. The outstanding amounts of payroll tax, workers compensation insurance premiums and (XIV) DERIVATIVE FINANCIAL INSTRUMENTS fringe benefits tax, which were consequential The Consolidated Entity holds derivative to the provision of personnel services by the financial instruments to hedge its foreign DTIRIS, were recognised as liabilities and currency risk exposures. Derivatives are initially expenses when the employee benefit to which recognised at fair value; attributable transaction they relate were recognised. costs are recognised in the net result for the year Subsequently from 24 February 2014, provisions when incurred. Subsequent to initial recognition, for personnel services are stated as a liability derivatives are measured at fair value and to the employee for services provided in the changes therein are accounted for as below. Consolidated Entity’s financial statements and Changes in the fair value of the derivative a liability to the Agency in the stand-alone hedging instrument designated as a cash flow financial statements of the Parent. hedge are recognised directly in equity to the Salaries and wages (including non-monetary extent that the hedge is effective. To the extent benefits) that are expected to be settled wholly that the hedge is ineffective, changes in fair within 12 months after the end of the period value are recognised in the net result for in which the employees render the service are the year. recognised and measured at the undiscounted If the hedge instrument no longer meets the amounts of the benefits. criteria for hedge accounting, expires, or is Annual leave is not expected to be settled sold, terminated or exercised, then hedge wholly before 12 months after the end of the accounting is discontinued prospectively. annual reporting period in which the employees The cumulative gain or loss previously render the related service. As such, it is required recognised in equity remains there until the to be measured at present value in accordance forecast transaction occurs. with AASB 119 Employee Benefits (although short-cut methods are permitted) and NSW TC (XV) OTHER ASSETS 15-09 Accounting for Long Service Leave and Other assets are recognised on a cost basis. Annual Leave. Actuarial advice obtained by NSW Treasury has confirmed that the use of a (i) PERSONNEL SERVICES AND nominal approach (using 7.9% of the nominal OTHER PROVISIONS value of the long-term portion of annual leave) can be used to approximate the present value (I) PERSONNEL SERVICES ARRANGEMENTS of the annual leave liability. The Consolidated Entity has assessed the actuarial advice based As a result of the Government Sector on the Consolidated Entity’s circumstances. Employment Act 2013 (GSE Act) and related Administrative Orders in the prior financial Unused non-vesting sick leave does not give rise year, on 24 February 2014 the Agency assumed to a liability, as it is not considered probable that responsibility from DTIRIS for the employees sick leave taken in the future will be greater than (and employee-related liabilities) responsible the benefits accrued in the future. for provision of personnel services to the Parent (Note 16). Accordingly, the Agency became (III) LONG SERVICE LEAVE the successor Public Service agency of the The liability for long service leave is measured arrangement between the Parent and DTIRIS at present value using the Projected Unit for provision of personnel services. Credit (PUC) method in accordance with AASB All payments to personnel and related 119 Employee Benefits and NSW TC 15-09 obligations were performed in DTIRIS’ name Accounting for Long Service Leave and Annual

75 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Leave. Market yields on Australian Government To calculate the present value of economic bonds are used to discount long service benefits, consideration is given to any applicable leave. This rate represents the yield that minimum funding requirements. matches as closely the estimated timing Re-measurements of the net defined benefit of expected payments. liability, which comprise actuarial gains and The bond rate used at the reporting date was losses, the return on plan assets (excluding 10-year government bond rate of 3.01% interest) and the effect of the asset ceiling (2014 3.54%). (if any, excluding interest), are recognised immediately in other comprehensive income. Amounts expected to be settled wholly within The Consolidated Entity determines the net 12 months of reporting date are not discounted. interest expense (income) on the net defined benefit liability (asset) for the period by applying (IV) DEFINED CONTRIBUTION SUPERANNUATION PLANS the discount rate used to measure the defined benefit obligation at the beginning of the A defined contribution superannuation plan is period to the then-net defined benefit liability a post-employment benefit plan whereby the (asset), taking into account any changes in the Consolidated Entity pays fixed contributions into net defined benefit liability (asset) during the a separate entity but has no legal or constructive period as a result of contributions and benefit obligation to pay any further amounts. payments. Net interest expense and other Contributions to defined contribution expenses related to defined benefit plans are superannuation plans are recorded in recognised in profit or loss. accordance with AASB 119 and NSW TC 14/05 When the benefits of a plan are changed or Accounting for Superannuation, and are when a plan is curtailed, the resulting change recognised as an expense when employees in benefit that relates to past service or the have rendered service entitling them to the gain or loss on curtailment is recognised contributions. Prepaid contributions are immediately in profit or loss. The Consolidated recognised as an asset to the extent that a Entity recognises gains and losses on the cash refund or a reduction in future payments settlement of a defined benefit plan when the is available. settlement occurs. Contributions to a defined contribution plan AASB 119 Employee Benefits does not specify that is due more than 12 months after the end whether the current and non-current portions of period in which the employees render the of assets and liabilities arising from post- service are discounted to their present value. employment benefits are required to be disclosed because at times the distinctions may (V) DEFINED BENEFIT SUPERANNUATION PLANS be arbitrary. The liability is disclosed as non- current as this best reflects when the liability is Defined benefit superannuation plans provide likely to be settled. defined lump sum benefits based on years of service and final average salary. (VI) TERMINATION BENEFITS The Consolidated Entity accounts for defined Termination benefits are recognised as an benefit superannuation plans in accordance expense when the Consolidated Entity is with AASB 119 Employee Benefitsand NSW demonstrably committed, without realistic TC 14/05 Accounting for Superannuation. A possibility of withdrawal, to a formal detailed liability or asset in respect of defined benefit plan to either terminate employment before superannuation plans is recognised in the the normal retirement age, or to provide statement of financial position, and is measured termination benefits as a result of an offer made as the present value of defined benefit to encourage voluntary redundancy. Termination obligation at the reporting date less the fair benefits are only recognised if it is probable that value of the superannuation fund assets at that the offer will be accepted, and the number of date and any unrecognised past service costs. acceptances can be estimated reliably. The calculation of defined benefit obligations Termination benefits falling due more than 12 is performed annually by a qualified actuary months after reporting date are discounted to using the PUC method. When determining present value. the liability, consideration is given to future salary and wage levels, experience of employee departures and periods of service. Prepaid (j) OTHER LIABILITIES contributions are recognised as an asset to the extent that cash refund/reduction in future (I) PAYABLES payments is available. When the calculation These amounts represent liabilities for goods results in a potential asset for the Consolidated and services provided to the Consolidated Entity Entity, the recognised asset is limited to the and other amounts, including interest, advance present value of economic benefits available in ticket sales and other income in advance. the form of any future refunds from the plan or Payables are recognised initially at fair value, reductions in future contributions to the plan. usually based on the transaction cost or face

76 value. Subsequent measurement is at amortised (m) EQUITY AND RESERVES cost using the effective interest method. Short- The revaluation surplus is used to record term payables with no stated interest rate are increments and decrements on the revaluation measured at the original invoice amount where of non-current assets. This accords with the the effect of discounting is immaterial. entity’s policy on the revaluation of property, plant and equipment as discussed in Note (II) OTHER PROVISIONS 1(h)(iii). Other provisions are recognised when: the Consolidated Entity has a present legal or The category "Accumulated Funds includes constructive obligation as a result of past events; all current and prior period retained funds. it is probable that an outflow of resources will be Separate reserve accounts are recognised required to settle the obligation; and the amount in the financial statements only if specific can be reliably estimated. legislation or Australian Accounting If the effect of the time value of money is Standards require such accounts. material, provisions are discounted at the rate that reflects the current market assessments of (n) EQUITY TRANSFERS the time value of money and the risk specific to the liability. The transfer of net assets between entities as a result of an administrative restructure, transfers of programs / functions and parts (k) FAIR VALUE HIERARCHY thereof between NSW public sector entities A number of the Consolidated Entity’s and "equity appropriations" are designated or accounting policies and disclosures require the required by Australian Accounting Standards measurement of fair values, for both financial to be treated as contributions by owners and and non-financial assets and liabilities. When recognised as an adjustment to "Accumulated measuring fair value, the valuation technique Funds". This treatment is consistent with AASB used maximises the use of relevant observable 1004 Contributions and Australian Interpretation inputs and minimises the use of unobservable 1038 Contributions by Owners Made to Wholly- inputs. Under AASB 13 Fair Value Measurement, Owned Public Sector Entities. the Consolidated Entity categorises, for Transfers arising from an administrative disclosure purposes, the valuation techniques restructure involving not-for-profit and for- based on the inputs used in the valuation profit government entities are recognised at the techniques as follows: amount at which the assets and liabilities were @@ Level 1 – quoted prices in active markets recognised by the transferor immediately prior for identical assets / liabilities that the to the restructure. Subject to below, in most Consolidated Entity can access at the instances this will approximate fair value. measurement date. All other equity transfers are recognised at fair @@ Level 2 – inputs other than quoted prices value, except for intangibles. Where an intangible included within Level 1 that are observable, has been recognised at (amortised) cost by the either directly or indirectly. transferor because there is no active market, the Consolidated Entity recognises the asset @@ Level 3 – inputs that are not based at the transferor’s carrying amount. Where on observable market data the transferor is prohibited from recognising (unobservable inputs). internally generated intangibles, the Consolidated The Consolidated Entity recognises transfers Entity does not recognise that asset. between levels of the fair value hierarchy at the end of the reporting period during which (o) COMPARATIVE INFORMATION the change has occurred. Refer Note 13 and Note 21 for further disclosures regarding fair Except when an Australian Accounting Standard value measurements of financial and non- permits or requires otherwise, comparative financial assets. information is presented in respect of the previous period for all amounts reported in the financial statements. (l) FUNDRAISING AND BEQUESTS The Opera House receives external philanthropic (p) CHANGES IN ACCOUNTING funding such as donations and bequests. These POLICY, INCLUDING NEW OR transactions are recorded as income within REVISED AUSTRALIAN ACCOUNTING the Consolidated Entity’s financial statements STANDARDS in the financial year that they are received, in accordance with the Consolidated Entity’s income (I) EFFECTIVE FOR THE FIRST TIME IN 2014-15 recognition policy (see Note 1 (g) (iv)). The funds may be applied to expenditure in the current The accounting policies applied in 2014-15 are financial year, or in future years. Details are consistent with those of the previous financial provided in Note 22 to these financial statements. year except as a result of the following new or

77 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

revised Australian Accounting Standards that @@ AASB 2015-1 regarding Annual have been applied for the first time in 2014-15: Improvements to the Australian Accounting Standards 2012-14 cycle, and AASB 2015-2 @@ AASB 10 Consolidated Financial regarding amendments to the AASB 101 Statements and AASB 12 Disclosure of disclosure initiatives Interests in Other Entities AASB 2015-1 and AASB 2015-2 set out AASB 10 supersedes AASB 127. It introduces minor amendments and improvements to a new principles-based control model the Australian Accounting Standards. The that focuses on both power and rights or Consolidated Entity has assessed the impact exposure to variable returns. The Standard of these changes and determined that they requires the parent entity to present are not material to the Consolidated Entity. consolidated financial statements as those The standards are not mandatory before 1 of a single economic entity, replacing the January 2016. requirements of AASB 127 Consolidated and Separate Financial Statements. The new @@ AASB 2015-3 regarding Amendments definition of control has not affected the to Australian Accounting Standards Consolidated Entity. AASB 12 introduces arising from the Withdrawal of AASB 1031 additional disclosure requirements for Materiality related entities. AASB 2015-3 affects the withdrawal of AASB 1031 Materiality, and is not expected to have @ AASB 2015-7 regarding Amendments to @ a significant impact on the Consolidated Australian Accounting Standards – Fair Entity. The change applies to accounting Value Disclosures of Not-for-Profit Public periods commencing on or after 1 July 2015. Sector Entities AASB 2015-7 relieves not-for-profit @@ AASB 2015-6 regarding Amendments public sector entities from certain fair to Australian Accounting Standards value disclosures in AASB13 Fair Value – Extending Related Party Disclosures Measurement. The amendment applies for to Not-for-Profit Public Sector Entities assets held primarily for their current service regarding AASB 10 Consolidated Financial potential rather than to generate future Statements, AASB 124 Related Party net cash flows. The Consolidated Entity Disclosures and AASB 1049 Whole of has elected to adopt this standard early, Government and General Government in accordance with the provisions of the Sector Financial Reporting standard and as permitted by Treasury. AASB 2015-6 extends the scope of AASB 124 to include not-for-profit public sector (II) ISSUED BUT NOT YET EFFECTIVE entities. The Consolidated Entity has not yet NSW public sector entities are not assessed the full impact of AASB 15, as this permitted to early adopt new Australian standard is not mandatory before 1 July 2016. Accounting Standards, unless Treasury determines otherwise. (III) RECLASSIFICATION OF FINANCIAL INFORMATION The following new Australian Accounting The lease make-good assets and associated Standards have not been applied and are accumulated depreciation of the Consolidated not yet effective, but will be relevant to the Entity have been reclassified from building and Consolidated Entity as discussed below. building services to plant and equipment to @@ AASB 9 Financial Instruments, AASB more accurately reflect the nature of the assets. 2010-7, AASB 2014-1, AASB 2014-7 and The impact of this reclassification to current and AASB 2014-8 Amendments to Australian prior year accounts has been disclosed in Note Accounting Standards arising from AASB 9 11. The assets are fully depreciated, and there is AASB 9 introduces new requirements for the no net impact to the balance sheet. classification and measurement of financial All advance ticket sales arising from customer assets and liabilities. These requirements receipts received by the Opera House box improve and simplify the approach for office, including those collected on behalf of classification and measurement of financial external hirers, was previously disclosed as part assets. The Agency has not yet assessed the of deferred revenue in Note 15. The proportion full impact of AASB 9, as this standard is not of advance ticket sales relating to an external mandatory before 1 January 2018. hirer has now been separately disclosed as a @@ AASB 15 and AASB 2014-5 regarding trade and other payable in Note 14. This is a Revenue from Contracts with Customers reclassification only and there is no net impact AASB 15 will affect all entities providing on the balance sheet or cash flow statement. goods or services under contract arrangements, especially those offering bundled products and services. The Consolidated Entity has not yet assessed the full impact of AASB 15, as this standard is not mandatory before 1 January 2017.

78 maximum exposure to credit risk is represented Note 2 by the carrying amount of the financial assets Financial Risk (net of any allowance for impairment). Management (I) TRADE AND OTHER RECEIVABLES The Consolidated Entity has exposure to All trade debtors are recognised as amounts the following risks from the use of financial receivable at balance date. Collectability of instruments: trade debtors is reviewed on an ongoing basis. Procedures as established in the Treasurer’s @@ credit risk Directions are followed to recover outstanding amounts, including letters of demand. Debts @@ liquidity risk that are known to be uncollectible are written @@ market risk off. The Consolidated Entity has raised an allowance for impairment that represents their These financial instruments arise directly from estimate of incurred losses in respect of trade the Consolidated Entity's operations or are and other receivables, based on objective required to finance the Consolidated Entity’s evidence that all amounts due will not be able operations. The Consolidated Entity does to be collected. This evidence includes past not enter into or trade financial instruments, experience, and current and expected changes including derivative financial instruments, for in economic conditions and debtor credit speculative purposes. ratings. No interest is earned on trade debtors. This note presents information about the Sales are made on 14-day terms. Consolidated Entity's exposure to each of the above risks, their objectives, policies and (II) OTHER FINANCIAL ASSETS processes for measuring and managing risk. Credit risk associated with the Consolidated Further quantitative and qualitative disclosures Entity’s financial assets, other than receivables, are included as appropriate, throughout the is managed through setting investment limits financial statements. and limiting investments to counterparties that have investment grade credit ratings from The Opera House has established an Audit and major credit rating agencies. Authority deposits Risk Committee, which has overall responsibility held with TCorp are guaranteed by the State. for the establishment and oversight of the risk TCorp deposits are similar to money market management framework and approves selected or bank deposits and can be placed “at call” or policies for managing risks. The Internal Auditors for a fixed term. The Consolidated Entity has and the Audit and Risk Committee review also placed funds on deposit with major banks, compliance with policies on a continuous basis. having regard to the rating provided by Standard The chair of the Audit and Risk Committee is & Poor's, Fitch or Moody’s. Bank deposits are an independent Member of the Trust, and for fixed terms, and the interest rate payable the committee regularly reports to the Trust is negotiated and is fixed for the term of the on its activities. deposit. The interest rate payable on at call A formal business risk assessment is undertaken deposits vary. The term deposits have varying to identify and analyse the risks faced by the maturity dates. None of these assets are past Consolidated Entity, to determine appropriate due or impaired. controls and monitoring mechanisms, and TCorp appoints and monitors fund managers formulate the internal audit program. Risks and establishes and monitors the application of are regularly reviewed by management and appropriate investment guidelines. reported to the Audit and Risk Committee in conjunction with standard reporting systems and procedures. Internal Audit undertakes both (b) LIQUIDITY RISK regular and ad hoc reviews of management controls and procedures, the results of which Liquidity risk is the risk that the Consolidated are reported to the Audit and Risk Committee. Entity will be unable to meet its payment In addition, the Audit and Risk Committee seeks obligations when they fall due. The Consolidated reports from management on a range of risk Entity continuously manages risk through management activities. monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. (a) CREDIT RISK The Consolidated Entity holds no loan facilities Credit risk is the risk of financial loss to and has not incurred any bank overdrafts the Consolidated Entity if a customer or within both the current and prior period. The counterparty to a financial instrument fails to Consolidated Entity’s exposure to liquidity risk meet its contractual obligations, and arises is deemed insignificant based on prior periods’ principally from the financial assets of the data and current assessment of risk. Consolidated Entity, including cash, receivables and authority deposits held through the normal The liabilities are recognised for amounts due course of business. The Consolidated Entity's to be paid in the future for goods or services 79 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

received, whether or not invoiced. Amounts (e) OTHER PRICE RISK – owing to suppliers (which are unsecured) are TCORP HOUR-GLASS FACILITIES settled in accordance with the policy set out Exposure to "other price risk" primarily arises in NSW TC 11/12 Payment of Accounts. If trade through the investment in the TCorp Hour-Glass terms are not specified, payment is made no investment facilities, which are held for strategic later than 30 days from receipt of correctly rather than trading purposes. The Consolidated rendered invoice. NSW TC 11/12 Payment of Entity has no direct equity investments. The Accounts allows the Minister to award interest Consolidated Entity holds units in the TCorp for late payment. Hour-Glass cash facility comprising of cash and money market instruments of up to 1.5 years. (c) MARKET RISK The unit price of each facility is equal to the Market risk is the risk that the fair value or future total fair value of net assets held by the facility cash flows of a financial instrument will fluctuate divided by the total number of units on issue because of changes in market prices, such as for that facility. Unit prices are calculated foreign exchange rates, interest rates and equity and published daily. TCorp as trustee for the prices. The objective of market risk management facilities is required to act in the best interest is to manage and control market risk exposures of the unit holders and to administer the trusts within acceptable parameters, while optimising in accordance with the trust deeds. As trustee, the returns. The Consolidated Entity’s exposures TCorp has appointed external managers to to market risk is primarily through currency risk manage the performance and risks of each on purchases that are denominated in a currency facility in accordance with a mandate agreed by other than Australian Dollars and other price the parties. However, TCorp acts as manager for risks associated with the movement in the unit part of the cash facility. A significant portion of price of the Hour-Glass investment facilities. The the administration of the facilities is outsourced interest rate risk is not expected to significantly to an external custodian. affect the operating results and financial NSW TCorp provides sensitivity analysis position. The Consolidated Entity does not enter information for each of the Investment facilities, into commodity contracts. using historically based volatility information collected over a 10-year period, quoted at two (d) CURRENCY RISK standard deviations (i.e. 95% probability). The TCorp Hour-Glass investment facilities (other The Consolidated Entity is exposed to currency than the Hour-Glass cash facility, which is risk on purchases made in currencies other than included as cash) are designated at fair value Australian Dollars. The currencies in which these through profit or loss and therefore any change transactions are primarily denominated are in unit price impacts directly on profit (rather Euro, GBP and USD. The Consolidated Entity’s than equity). A reasonably possible change is policy is to fully hedge any substantial future based on the percentage change in unit price (as foreign currency purchases when contracted. advised by TCorp) multiplied by the redemption The Consolidated Entity uses forward exchange value as at 30 June year each year for each contracts to hedge its currency risk, with facility (balance from Hour-Glass statement). maturity dates aligned to the contracted payment dates.

80 Note 3 Revenue

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

(a) Sale of Goods and Services

Gross box office 24,082 24,466 24,082 24,466

Theatre services 14,918 15,516 14,918 15,516

Venue hire 8,776 8,156 8,776 8,156

Tours 9,312 8,334 9,312 8,334

Food and beverage 10,094 9,796 10,094 9,796

Booking fees and charges 4,650 4,683 4,650 4,683

Retail and licensing 1,723 1,935 1,723 1,935

Miscellaneous 1,892 1,561 1,892 1,561

75,447 74,447 75,447 74,447

(b) Investment Revenue

Interest revenue from financial assets not at fair value 2,299 2,577 2,299 2,577 through profit or loss

TCorp Hour-Glass investment facilities designated at 520 1,222 520 1,222 fair value through profit or loss

2,819 3,799 2,819 3,799

(c) Sponsorship Revenue

Contra sponsorship 2,448 4,868 2,448 4,868

Contra sponsorship – capital – 254 – 254

Cash sponsorship 2,872 3,303 2,872 3,303

5,320 8,425 5,320 8,425

(d) Government Contributions

Recurrent

Annual endowment 13,170 13,573 13,170 13,573

13,170 13,573 13,170 13,573

Capital and Maintenance

Capital – Vehicle access and pedestrian safety – 14,305 – 14,305

Capital – Stage management system upgrade – 1,598 – 1,598

Capital – Lifts and escalators 4,194 8,222 4,194 8,222

Capital – Renewal framework 13,700 – 13,700 –

Strategic asset maintenance (i) 25,853 38,833 25,853 38,833

43,747 62,958 43,747 62,958

56,917 76,531 56,917 76,531

(i) Recognition of the Strategic asset maintenance grant in 2014 is impacted by the advance receipt of $6,850k, which pertains to 2015. The receipt was recognised in the income statement in accordance with AASB 1004 Contributions.

81 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 4 Expenses

(a) EMPLOYEE-RELATED EXPENSES Up to and including 23 February 2014, all of the Sydney Opera House’s personnel services were provided by DTIRIS (refer Note 22), except for temporary assistance. Subsequently from 24 February 2014, all personnel services were provided to the Parent by the Agency. The following details employee expenses incurred by the Consolidated Entity (through the Agency) subsequent to 24 February 2014.

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Salary, wages and allowances 52,433 16,001 – – (including employee leave)

Superannuation – defined contribution plans 4,042 1,342 – –

Superannuation – defined benefit plans 506 (312) – –

Payroll tax and fringe benefits tax 3,039 1,031 – –

Workers compensation insurance 101 (357) – –

Other expenses 86 22 – –

Employee-related expenses 60,207 1 7,7 27 – –

Less: charged to maintenance (6,829) (2,274) – –

53,378 15,453 – –

(b) PERSONNEL SERVICES EXPENSES The following expenses relate to personnel services provided by DTIRIS up to and including 23 February 2014, and provided to the Parent by the Agency from 24 February 2014 onwards. The Consolidated Entity expenses represent only those costs incurred by DTIRIS up to and including the 23 February 2014. Employee expenses incurred by the Consolidated Entity subsequently from 24 February 2014 are recorded in employee-related expenses (Note 4(a)).

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Personnel service expenses – 34,911 58,514 52,054

Temporary assistance – 579 1,635 875

– 35,490 60,149 52,929

Less: charged to maintenance – (4,555) (6,829) (6,829)

– 30,935 53,320 46,100

Personnel service expenses (Note 4(b)) and employee-related expenses (Note 4(a)) do not include those employee-related costs that have been capitalised as an asset and classified as WIP of $802k (2014: $1,448k).

82 (c) OTHER EXPENSES

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Artist fees and presentation expenses 15,628 16,428 15,628 16,428

Publicity and advertising 5,598 6,966 5,598 6,966

Utilities and cleaning 5,572 6,240 5,572 6,240

Administration expenses 5,002 4,891 5,002 4,891

Consumables and minor equipment 4,445 4,953 4,445 4,953

Consultants 242 1,338 242 1,338

Other fees for services 5,076 6,034 5,076 6,034

Tour packages and events 623 483 623 483

Merchandise expenses – 12 – 12

Building and general insurance 1,023 1,126 1,023 1,126

Bank and credit card charges 1,234 1,216 1,234 1,216

Rent payments on operating leases

– minimum lease payments 1,156 782 1,156 782

– outgoing payments 222 85 222 85

Bad and doubtful debt expense 2 (12) 2 (12)

Audit fee 102 98 102 98

45,925 50,640 45,925 50,640

(d) MAINTENANCE

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

System and network maintenance 258 704 258 704

Building and equipment repairs and maintenance 23,307 26,124 23,307 26,124

23,565 26,828 23,565 26,828

Plus: personnel services and employee-related 6,829 6,829 6,829 6,829 maintenance charge

30,394 33,657 30,394 33,657

83 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

(e) DEPRECIATION, AMORTISATION AND MAKE GOOD

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Depreciation

Plant and equipment 9,851 12,019 9,851 12,019

Amortisation

Intangible assets 311 177 311 177

Amortisation of leasehold improvements 263 146 263 146

574 323 574 323

Provision

Lease make-good expense 15 4 15 4

10,440 12,346 10,440 12,346

(f) FINANCE COSTS

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Interest paid to suppliers – 1 – 1

– 1 – 1

Note 5 Other Gains / (Losses)

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Gain / (Loss) on Disposal

Gain / (Loss) on disposal of fixed assets (41) 21 (41) 21

Assets written off (10) (12) (10) (12)

(51) 9 (51) 9

Other Gain / (Loss)

Realised gain on foreign currency (1) 1 (1) 1

(52) 10 (52) 10

84 Note 6 Trustees Remuneration No emoluments were paid to the Trustees during the year (2014: nil). The Trustees resolved to cease being remunerated from 1 January 2007. Part of Trustee duties involves attending Sydney Opera House Trust events.

Note 7 Cash and Cash Equivalents

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Cash at bank and on hand 7,450 11,228 7,450 11,228

Hour-Glass cash facility 18,218 23,698 18,218 23,698

Short-term deposits 51,453 63,500 51,453 63,500

7 7,1 21 98,426 7 7,1 21 98,426

Cash and cash equivalent assets recognised in the statement of financial position are reconciled at the end of the year to the statement of cash flows as follows:

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Cash and cash equivalents 7 7,121 98,426 7 7,121 98,426 (per Statement of Financial Position)

Closing cash and cash equivalents 7 7,121 98,426 7 7,121 98,426 (per Statement of Cash Flows)

All short-term deposits are considered by the Consolidated Entity in day-to-day operations as liquid and aged as follows:

2015 2014 $’000 $’000

Between 3 – 6 months 24,553 3,000

Between 6 – 12 months 26,900 60,500

51,453 63,500

Refer Note 21 (c) and (d) for details regarding interest rate risk and a sensitivity analysis for financial assets and liabilities.

85 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 8 Trade and Other Receivables

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Trade receivables 2,371 1,527 2,371 1,527

Allowance for impairment of receivables (15) – (15) –

Accrued income 4,245 3,072 4,245 3,072

GST receivable – 32 1,204 1,759

Other receivables 672 1,321 672 1,321

7,273 5,952 8,477 7,6 7 9

Refer Note 21 (a) and (d) for details regarding exposure to credit and currency risk, impairment losses related to trade and other receivables and the reconciliation of movements in allowance for impairment of receivables.

Note 9 Prepayments

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Prepaid superannuation – defined benefit schemes 1,733 2,167 – –

Prepaid expenses 675 1,126 675 1,126

2,408 3,293 675 1,126

Prepaid Superannuation The funding position at 30 June 2015 of the three defined benefits schemes related to personnel services received has been advised by Pillar Administration. These are the State Authorities Superannuation Scheme (SASS), the State Superannuation Scheme (SSS) and the State Authorities Non Contributory Superannuation Scheme (SANCS).

86 Estimated Reserve Account Funds Accrued Liability Prepaid Contributions

2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000

Defined Benefit Asset

SSS 49,418 46,681 (47,709) (44,537) 1,709 2,144

SANCS 1,561 1,572 (1,537) (1,549) 24 23

50,979 48,253 (49,246) (46,086) 1,733 2,167

Defined Benefit Liability

SASS 9,229 8,195 (9,618) (8,583) (389) (388)

9,229 8,195 (9,618) (8,583) (389) (388)

Total 60,208 56,448 (58,864) (54,669) 1,344 1,779

The defined benefit liability for the Consolidated Entity’s defined benefit plans has been included in trade and other payables (refer to Note 14). The defined benefit liability for the Parent has been included in personnel services payable (refer to Note 16).

Note 10 Inventory – Held for Distribution

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Finished goods – at cost adjusted for obsolescence 31 58 31 58

Total Inventory 31 58 31 58

87 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 11 Property, Plant and Equipment

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Land

At fair value 111,000 111,000 111,000 111,000

Land – at Fair Value 111,000 111,000 111,000 111,000

Building and Building Services

Gross carrying amount (i) 1,952,996 1,952,537 1,952,996 1,952,537

Building and Building Services – at Fair Value 1,952,996 1,952,537 1,952,996 1,952,537

Land and Buildings – at fair value 2,063,996 2,063,537 2,063,996 2,063,537

Plant and Equipment

Gross carrying amount 222,032 212,944 222,032 212,944

Less: accumulated depreciation and impairment (i) (100,290) (93,034) (100,290) (93,034)

Plant and Equipment – at Fair Value 121,742 119,910 121,742 119,910

Art collection – at fair value 6,989 5,160 6,989 5,160

Work in progress – at fair value 169,143 149,738 169,143 149,738

Property, Plant and Equipment – at Fair Value 2,361,870 2,338,345 2,361,870 2,338,345

(i) The 2014 figures have been restated to reclassify lease make-good assets and the associated accumulated depreciation from buildings and building services to plant and equipment. The assets are fully depreciated, and there is no net impact to the balance sheet. This reclassification has also been reflected in the 2013 opening balance and the lease make-good expense in the movement reconciliation in Note 17.

RECONCILIATION Reconciliation of the fair value of property, plant and equipment is set out below:

CONSOLIDATED AND PARENT:

Land and Plant and Work in Art Total 2015 Building Equipment Progress Collection $’000 $’000 $’000 $’000 $’000

Fair value at start of year (i) 2,063,537 119,910 149,738 5,160 2,338,345

Additions – 958 31,152 540 32,650

Disposals and write-offs – (31) – – (31)

Reclassification 459 11,034 (11,747) – (254)

Revaluation – – – 1,289 1,289

Lease make-good expense – (15) – – (15)

Depreciation – (10,114) – – (10,114)

Fair Value at end of year 2,063,996 121,742 169,143 6,989 2,361,870

88 The comparative reconciliation for the year ended 30 June 2014 is set out below:

CONSOLIDATED AND PARENT:

Land and Plant and Work in Art Total 2014 Building Equipment Progress Collection $’000 $’000 $’000 $’000 $’000

Fair value at start of year (i) 2,027,299 129,813 101,366 5,160 2,263,638

Additions (i) – 782 50,998 – 51,780

Disposals and write-offs – (96) – – (96)

Reclassification – 1,579 (2,626) – (1,047)

Revaluation 36,238 – – – 36,238

Lease make-good expense (i) – (4) – – (4)

Depreciation – (12,164) – – (12,164)

Fair Value at end of year 2,063,537 119,910 149,738 5,160 2,338,345

Note 12 Intangible Assets

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Software

At cost (gross carrying amount) 3,421 3,624 3,421 3,624

Less: accumulated amortisation and impairment (2,253) (2,387) (2,253) (2,387)

Net carrying amount 1,168 1,237 1,168 1,237

Reconciliation of the carrying value of intangibles is set out below:

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Intangibles – Fair value at start of year 1,237 223 1,237 223

Additions 10 158 10 158

Reclassification 253 1,047 253 1,047

Disposals and write-offs (21) (13) (21) (13)

Amortisation (311) (178) (311) (178)

Intangibles – Fair Value at end of year 1,168 1,237 1,168 1,237

89 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 13 Fair Value Measurement of Non-Financial Assets

(a) FAIR VALUE HIERARCHY

Total fair Level 1 Level 2 Level 3 2015 value $’000 $’000 $’000 $’000

Property and Art Collection, excluding Plant and Equipment and WIP (Note 11)

Land – 111,000 – 111,000

Buildings – – 1,952,996 1,952,996

Art collection – 6,989 – 6,989

– 11 7,989 1,952,996 2,070,985

Total fair Level 1 Level 2 Level 3 2014 value $’000 $’000 $’000 $’000

Property and Art Collection, excluding Plant and Equipment and WIP (Note 11)

Land – 111,000 – 111,000

Buildings – 1,952,537 – 1,952,537

Art collection – 5,160 – 5,160

– 2,068,697 – 2,068,697

There were no transfers between Level 1 and 2 during the year. Building has been reclassified from Level 2 to 3 in 2014-15, as there are no active markets for World Heritage Listed cultural institutions upon which to base an asset valuation.

(b) VALUATION TECHNIQUES, INPUTS AND PROCESSES The fair value of property, plant and equipment was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and categories of the property, plant and equipment being valued.

Type Valuation technique

Market approach: The fair value of land has been determined using the direct comparison approach. Market evidence is obtained through transactions involving land within the Sydney central business district and fringe commercial areas. A rate per square metre of land and a Land rate per square metre of floor space area has been deduced for each sale, and compared to the Consolidated Entity’s land, considering other key factors such as heritage restrictions, zoning, location and frontage.

Cost approach: The fair value of buildings is determined using a reproduction cost approach given the unique nature of the building. The valuation includes the building fabric, structure, finishes and fittings, and assesses these components using the standard Australian Institute of Buildings Quantity Surveyors (AIQS) elements with measured quantities and the application of current market rates to the measured quantities. No diminution in value has been recognised due to the on-going maintenance program and the long design and economic life of the assets.

Market approach: The fair value of collection assets is determined using quoted market prices Art collection for similar items.

90 (c) RECONCILIATION OF RECURRING LEVEL 3 FAIR VALUE MEASUREMENTS

Buildings 2015 $’000

Fair value as at 1 July 2014 –

Additions –

Revaluation increments / (decrements) recognised in net result –

Revaluation increments / (decrements) recognised in other comprehensive income –

Transfers from Level 2 1,952,996

Transfers to Level 2 –

Disposals –

Depreciation –

Fair Value as at 30 June 2015 1,952,996

Note 14 Trade and Other Payables

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Trade creditors 2,150 5,108 2,150 5,108

Accrued expenses 5,848 9,161 3,860 9,161

Advance external ticket sales (i) 5,834 6,584 5,834 6,584

GST payable 464 – – –

Other payables 356 743 215 743

Defined benefit liability 389 388 – –

15,041 21,984 12,059 21,596

(i) Advanced ticket sales comprise box office receipts received by the Opera House in advance of a show taking place. Previously, the entire balance of advanced ticket sales had been disclosed as deferred revenue (see Note 15). The balance of advance ticket sales for shows held by resident companies and other commercial hirers has been quantified and separately disclosed as a payable for 2015 and 2014.

Refer to Note 21 (b) and (d) for details regarding exposure to currency and liquidity risk related to trade and other payables.

91 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 15 Deferred Revenue

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Advance ticket sales (ii) 3,787 3,400 3,787 3,400

Hirers’ deposits 1,134 1,304 1,134 1,304

Income in advance 1,192 1,018 1,192 1,018

6,113 5,722 6,113 5,722

(ii) Advanced ticket sales comprise box office receipts received by the Opera House in advance of a show taking place. Previously, the entire balance of advanced ticket sales had been disclosed as deferred revenue. The balance of advance ticket sales for shows held by resident companies and other commercial hirers has been quantified and separately disclosed as a payable for 2015 and 2014 (see Note 14).

Note 16 Personnel Services Payable

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Current

Personnel services payable – – 17,508 12,573

– – 1 7,508 12,573

Non-Current

Personnel services payable – – 1,679 1,703

– – 1,679 1,703

– – 19,187 14,276

92 Note 17 Provisions

Consolidated Parent

CURRENT AND 2015 2014 2015 2014 NON-CURRENT PROVISIONS $’000 $’000 $’000 $’000

Current

Lease make-good provision 99 235 99 235

Employee benefits 14,962 12,539 – –

Fringe benefits 93 86 – –

Total Current Provisions 15,154 12,860 99 235

Non-Current

Lease make-good provision 285 – 285 –

Employee benefits 1,679 1,703 – –

Total Non-Current Provisions 1,964 1,703 285 –

Total Provisions 1 7,11 8 14,563 384 235

The current employee benefits provision includes annual recreation leave, of which $2,740k is expected to be taken within the next 12 months, with the remaining $1,197k after 12 months. Reconciliations of the fair value of the lease make-good provision is set out below:

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Carrying amount at the start of the year 235 230 235 230

Additional provision 149 5 149 5

Provision released – – – –

Carrying amount at the end of the year 384 235 384 235

Under the lease agreements the Consolidated Entity is required to reinstate the leased premises located at Level 4 and 5, Pitt St; Level 3, Customs House and Leichhardt Store in Sydney to the condition they were in at the lease commencement date.

93 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 18 Other Liabilities

CURRENT AND NON-CURRENT OTHER LIABILITIES

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Current

Lease incentive 206 – 206 –

Total Current Other Liabilities 206 – 206 –

Non-Current

Lease incentive 722 – 722 –

Deferred rent 27 – 27 –

Total Non-Current Other Liabilities 749 – 749 –

Total Other Liabilities 955 – 955 –

DESCRIPTION OF THE REGULATORY Note 19 FR AMEWORK Employee Defined The schemes in the Fund are established and governed by the following NSW legislation: Benefits Superannuation Act 1916, State Authorities The following disclosures relate to the defined Superannuation Act 1987, Police Regulation benefit superannuation plan of the Consolidated (Superannuation) Act 1906, State Authorities Entity. The Parent does not have a defined Non-Contributory Superannuation Scheme benefit superannuation plan as all employees of Act 1987, and their associated regulations. The Opera House are provided by the Agency. The schemes in the Fund are exempt public sector superannuation schemes under the NATURE OF THE BENEFITS PROVIDED Commonwealth Superannuation Industry BY THE FUND (Supervision) Act 1993 (SIS). The SIS Legislation treats exempt public sector superannuation funds The SAS Trustee Corporation (STC) Pooled as complying funds for concessional taxation and Fund (the Fund) holds in trust the investments of superannuation guarantee purposes. the closed NSW public sector superannuation schemes: Under a Heads of Government agreement, the New South Wales Government undertakes @@ State Authorities Superannuation Scheme to ensure that the Fund will conform to the (SASS) principles of the Commonwealth’s retirement @@ State Superannuation Scheme (SSS) incomes policy relating to preservation, vesting and reporting to members and that member @@ Police Superannuation Scheme (PSS) benefits are adequately protected. @@ State Authorities Non-contributory The New South Wales Government prudentially Superannuation Scheme (SANCS). monitors and audits the Fund and the Trustee These schemes are all defined benefit schemes Board activities in a manner consistent with – at least a component of the final benefit is the prudential controls of the SIS legislation. derived from a multiple of member salary and These provisions are in addition to other years of membership. Members receive lump legislative obligations on the Trustee Board sum or pension benefits on retirement, death, and internal processes that monitor the Trustee disablement and withdrawal. Board’s adherence to the principles of the Commonwealth’s retirement incomes policy. All the Schemes are closed to new members.

94 An actuarial investigation of the Fund is @@ Investment risk – The risk that investment performed every three years. The last actuarial returns will be lower than assumed and the investigation was performed as at 30 June 2012. Employer will need to increase contributions The next actuarial investigation is due as at to offset this shortfall. 30 June 2015 and the report is expected to be @ Longevity risk – The risk that pensioners released by December 2015. @ live longer than assumed, increasing future pensions. DESCRIPTION OF OTHER ENTITIES' @@ Pension indexation risk – The risk that RESPONSIBILITIES FOR THE pensions will increase at a rate greater than GOVERNANCE OF THE FUND assumed, increasing future pensions. The Fund's Trustee is responsible for the @@ Salary growth risk – The risk that wages or governance of the Fund. The Trustee has a legal salaries (on which future benefit amounts for obligation to act solely in the best interests active members will be based) will rise more of Fund beneficiaries. The Trustee has the rapidly than assumed, increasing defined following roles: benefit amounts and thereby requiring @@ Administration of the Fund and payment additional employer contributions. to the beneficiaries from Fund assets when @@ Legislative risk – The risk is that legislative required in accordance with the Fund rules; changes could be made which increase the @@ Management and investment of the cost of providing the defined benefits. Fund assets; and The defined benefit fund assets are invested @@ Compliance with other applicable with independent fund managers and have a regulations. diversified asset mix. The Fund has no significant concentration of investment risk or liquidity risk.

DESCRIPTION OF RISKS Description of significant events There are a number of risks to which the Fund There were no funds amendments, curtailments exposes the Employer. The more significant risks or settlements during the year. relating to the defined benefits are:

RECONCILIATION OF THE NET DEFINED BENEFIT LIABILITY / (ASSET)

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Net Defined Benefit Liability / (Asset) at start of year 388 (23) (2,144) (1,779)

Current service cost 289 67 201 557

Net interest on the net defined benefit liability / (asset) 14 (1) (77) (64)

Actual return on Fund assets less interest income (657) (133) (4,671) (5,461)

Actuarial (gains)/ losses arising from changes in 86 7 (22) 71 demographic assumptions

Actuarial (gains) / losses arising from changes in financial 178 37 3,152 3,367 assumptions

Actuarial (gains) / losses arising from liability experience 91 (43) 63 111

Adjustment for effect of asset ceiling – 65 1,789 1,854

Net Defined Benefit Liability / (Asset) at end of year 389 (24) (1,709) (1,344)

95 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

RECONCILIATION OF THE FAIR VALUE OF FUND ASSETS

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Fair Value of Fund assets at beginning of the year 8,195 1,702 58,320 68,217

Interest income 279 58 2,046 2,383

Actual return on Fund assets less interest income 657 133 4,671 5,461

Contributions by participants 101 – 98 199

Benefits paid (51) (174) (2,083) (2,308)

Taxes, premiums and expenses paid 47 41 209 297

Fair Value of Fund assets at end of the year 9,228 1,760 63,261 74,249

RECONCILIATION OF THE DEFINED BENEFIT OBLIGATION

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Present Value of Defined Benefit Obligations 8,584 1,549 44,537 54,670 at beginning of the year

Current service cost 289 67 201 557

Interest cost 293 53 1,554 1,900

Contributions by participants 101 – 98 199

Actuarial (gains) / losses arising from changes in 86 7 (22) 71 demographic assumptions

Actuarial (gains) / losses arising from changes in financial 178 37 3,152 3,367 assumptions

Actuarial (gains) / losses arising from liability experience 91 (43) 63 111

Benefits paid (51) (174) (2,083) (2,308)

Taxes, premiums and expenses paid 47 41 209 297

Present Value of Defined Benefit Obligations at 9,618 1,537 47,709 58,864 end of the year

RECONCILIATION OF THE EFFECT OF THE ASSET CEILING

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Adjustment for effect of asset ceiling at beginning – 129 11,638 11,767 of the year

Interest cost on adjustment for effect of asset ceiling – 4 416 420

Change in the effect of asset ceiling – 65 1,789 1,854

Adjustment for effect of asset ceiling at end of – 198 13,843 14,041 the year

96 The adjustment for the effect of asset ceiling has been determined based on the maximum economic benefit available to the entity in the form of reductions in future employer contributions.

FAIR VALUE OF FUND ASSETS All Fund assets are invested by STC at arm’s length through independent fund managers, assets are not separately invested for each entity, and it is not possible or appropriate to disaggregate and attribute Fund assets to individual entities. As such the disclosures below relate to total assets of the Fund. As at 30 June 2015

Total Level 1 Level 2 Level 3 Asset Category $M $M $M $M

Short-term securities 2,642 96 2,546 –

Australian fixed interest 2,657 1 2,639 17

International fixed interest 1,004 – 1,004 –

Australian equities 10,407 9,899 504 4

International equities 13,111 9,963 2,585 563

Property 3,452 948 718 1,786

Alternatives 7,170 622 3,020 3,528

Total ** 40,443 21,529 13,016 5,898

The percentage invested in each asset class at the reporting date is:

Short-term securities 6.5%

Australian fixed interest 6.6%

International fixed interest 2.5%

Australian equities 25.7%

International equities 32.4%

Property 8.6%

Alternatives 17.7%

Total 100%

** Additional to the assets disclosed above, at 30 June 2015 the Fund has provisions for receivable/(payable) estimated to be around $1.74 billion. This gives a total estimated asset balance of $42.2 billion.

Level 1 – quoted prices in active markets for identical assets or liabilities. The assets in this level are listed shares; listed unit trusts. Level 2 – inputs other than quoted prices observable for the asset or liability either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts where quoted prices are available in active markets for identical assets or liabilities. Level 3 – inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds. Derivatives, including futures and options, can be used by investment managers. However, each manager's investment mandate clearly states that derivatives may only be used to facilitate efficient cash flow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the investment portfolio. As such, managers make limited use of derivatives.

97 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

FAIR VALUE OF ENTITY’S OWN FINANCIAL INSTRUMENTS The disclosures below relate to total assets of the Fund. The fair value of the Fund assets includes as at 30 June 2015 include $209.2 million in NSW Government bonds. Of the direct properties owned by the Fund: @@ Government Property NSW occupies part of a property owned by the Fund with a fair value of $159 million (30 June 2014: $153 million). @@ NSW Ambulance occupies part of a property 50% owned by the Fund with a fair value of $204 million (30 June 2014: $205 million).

SIGNIFICANT ACTUARIAL ASSUMPTIONS AT 30 JUNE 2015

Assumption 2015

Discount rate 3.03% pa

Salary increase rate 2.50% pa 1 July 2015 to 30 June 2019, 3.50% pa to 30 June 2021, 3.00% pa (excluding promotional increases) from 1 July 2021 to 30 June 2025, and 3.50% pa thereafter

2.50% pa to 30 June 2016, 2.75% pa from 1 July 2016 to 30 June 2018, and Rate of CPI increase 2.50% pa thereafter

The pensioner mortality assumptions are as per the 2012 Actuarial Investigation of the Fund. These assumptions are disclosed in the actuarial Pensioner mortality investigation report available from the trustee's website. The report shows the pension mortality rates for each age

SENSITIVITY ANALYSIS The entity’s total defined benefit obligation as at 30 June 2015 under several scenarios is presented below. The total defined benefit obligation disclosed is inclusive of the contribution tax provision that is calculated based on the asset level at 30 June 2015. Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G and H relate to sensitivity to demographic assumptions.

Scenario A Scenario B Base Case -1.0% discount rate +1.0% discount rate

Discount rate 3.03% 2.03% 4.03%

Rate of CPI increase as above as above as above

Salary inflation rate as above as above as above

Defined benefit obligation ($'000) 58,864 65,755 53,175

Scenario C Scenario D Base Case +0.5% rate of CPI increase -0.5% rate of CPI increase

Discount rate as above as above as above

Rate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% pa

Salary inflation rate as above as above as above

Defined benefit obligation ($'000) 58,864 61,922 56,062

98 Scenario E Scenario F Base Case +0.5% salary increase rate -0.5% salary increase rate

Discount rate as above as above as above

Rate of CPI increase as above as above as above

Salary inflation rate as above above rates plus 0.5% pa above rates plus 0.5% pa

Defined benefit obligation ($'000) 58,864 59,116 58,622

Scenario G Scenario H Base Case +5% pensioner -5% pensioner mortality rates mortality rates

Defined benefit obligation ($'000) 58,864 58,265 59,501

The defined benefit obligation has been recalculated by changing the assumptions as outlined above, whilst retaining all other assumptions.

ASSET LIABILITY MATCHING The Trustee monitors its asset-liability risk continuously in setting its investment strategy. It also monitors cash flows to manage liquidity requirements. No explicit asset-liability matching strategy is used by Trustee.

FUNDING ARRANGEMENTS Funding arrangements are reviewed at least every three years following the release of the triennial actuarial review and were last reviewed following completion of the triennial review as at 30 June 2012. Contribution rates are set after discussions between the employer, STC and NSW Treasury. Funding positions are reviewed annually and funding arrangements may be adjusted as required after each annual review.

SURPLUS / DEFICIT The following is a summary of the 30 June 2015 financial position of the Fund calculated in accordance with AAS 25 Financial Reporting by Superannuation Plans:

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Accrued benefits* 8,318 1,261 27,958 37,537

Net market value of Fund assets (9,229) (1,760) (63,261) (74,250)

Net (surplus) / deficit (911) (499) (35,303) (36,713)

*There is no allowance for a contribution tax provision with the accrued benefits figure for AAS 25. Allowance for contributions tax is made when setting the contribution rates.

CONTRIBUTION RECOMMENDATIONS Recommended contribution rates for the Consolidated Entity for the current year are:

SASS SANCS SSS

Multiple of member contributions % member salary multiple of member contributions

– – –

99 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

ECONOMIC ASSUMPTIONS The economic assumptions adopted for the 30 June 2012 actuarial investigation of the Fund are:

Weighted average assumptions

Expected rate of return on Fund assets backing current pension liabilities 8.3% pa

Expected rate of return on Fund assets backing other liabilities 7.3% pa

2.7% pa to 30 June Expected salary increase rate (excluding promotional salary increases) 2018 then 4.0% pa

Expected rate of CPI increase 2.5% pa

EXPECTED CONTRIBUTIONS FOR 2015

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Expected employer contributions – – – –

MATURITY PROFILE OF DEFINED BENEFIT OBLIGATION The weighted average duration of the defined benefit obligation is 11.6 years.

PROFIT AND LOSS IMPACT

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Current service cost 289 67 201 557

Net interest 14 (1) (77) (64)

Defined Benefit Cost 303 66 124 493

OTHER COMPREHENSIVE INCOME

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Actuarial (gains) / losses on liabilities 355 2 3,193 3,550

Actual return on Fund assets less interest income (657) (134) (4,671) (5,462)

Change in the effect of asset ceiling – 65 1,789 1,854

Total re-measurement in Other (302) (67) 311 (58) Comprehensive Income

100 Note 20 Derivatives used for hedging

FOREIGN CURRENCY RISK MANAGEMENT The Consolidated Entity undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts to manage risk. Basis adjustments are made to the carrying amounts of non-financial hedged items when the anticipated purchase transaction takes place. The following table details the forward foreign currency hedge contracts outstanding as at reporting date:

Asset Liability Net Position

Foreign Currency 2015 2014 2015 2014 2015 2014 Forward Contracts $’000 $’000 $’000 $’000 $’000 $’000

Euro 40 215 (41) (222) (1) (7)

GBP 217 861 (204) (884) 13 (23)

USD 391 232 (376) (239) 15 (7)

CAD – 107 – (105) – 2

SEK – 1 – (1) – –

Total 648 1,416 (621) (1,451) 27 (35)

Refer to Note 21 (b) and (d) for details regarding exposure to currency and liquidity risk to derivative financial instruments. The Consolidated Entity entered into contracts for the purchase of various currencies that expire within 12 months after reporting date. The Consolidated Entity enters into forward foreign exchange contracts to cover foreign currency payments due on future contracts. As at reporting date the aggregate amount of unrealised profit on forward foreign exchange contracts relating to anticipated future transactions is $27k (2014: loss 35k). In the current year, these unrealised gains have been deferred in the hedging reserve to the extent the hedge is effective.

RECONCILIATION Reconciliation of unrealised gains on forward exchange contracts for the Parent and the Consolidated Entity is as follows:

2015 2014 $’000 $’000

Carrying amount at the start of the year (35) 263

Unrealised (loss) / gain on forward exchange contracts 62 (298)

Total unrealised (Loss) / Gains on forward exchange contracts 27 (35)

101 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 21 Financial Instruments The Consolidated Entity’s principal financial instruments are outlined below. These financial instruments arise directly from operations or are required to finance the operations. The Consolidated Entity does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Consolidated Entity’s main risks arising from financial instruments are outlined below, together with objectives, policies and processes for measuring and managing risk. Further quantitative and qualitative disclosures are included throughout these financial statements. The Consolidated Entity has overall responsibility for the oversight of risk management, and reviews and agrees policies for managing each of these risks. Risk management policies are established to identify and analyse the risks faced, to set risk limits and controls and to monitor risks. Compliance with policies is reviewed by the internal auditors on a continuous basis.

Carrying Carrying Amount Amount Financial Instrument Categories NOTE Category 2015 2014 $’000 $’000

Financial Assets (i)

Cash and cash equivalents 7 N/A 7 7,121 98,426

Loans and receivables (at Trade and other receivables 8 7,273 5,920 amortised cost)

Designated and effective Derivative financial instruments 20 648 1,416 hedging instrument

Financial Liabilities (ii)

Financial liabilities (at Trade and other payables 14 14,577 21,984 amortised cost)

Designated and effective Derivative financial instruments 20 621 1,451 hedging instrument

(i) Excludes statutory receivables and prepayments such as GST (not within scope of AASB 7).

(ii) Excludes statutory payables and unearned revenue such as GST (not within scope of AASB 7).

(a) CREDIT RISK

EXPOSURE TO CREDIT RISK The carrying amount of the Consolidated Entity's financial assets represents the maximum credit exposure. The Parent and the Consolidated Entity's maximum exposure to credit risk at reporting date was:

2015 2014 NOTE $’000 $’000

Cash and cash equivalents 7 7 7,121 98,426

Trade and other receivables 8 7,273 5,920

84,394 104,346

102 CASH AND CASH EQUIVALENTS Cash comprises cash on hand and bank balances with Commonwealth Bank, National Australia Bank and Westpac. Cash is recorded at nominal values for cash on hand and cash held in bank accounts. Interest is earned on daily bank balances. The interest rate at year-end was 0.9% for the CBA Management Account (2014: 1.50%) and 1.70% for the SOH Business Online Saver (2014: 2.70%). The Annual Giving Business Online Saver attracts an interest rate of 1.70% (2014: 2.70%). The NAB operating account does not attract any interest and balance is kept to a minimal value of $12k (2014: $22k) and the TCorp Hour- Glass cash facility is discussed in Note 21 (c) and 21 (f) below. Westpac operating account attracts an interest rate of 2%. The Consolidated Entity has placed funds on deposit with TCorp, NAB, Westpac/St. George, ANZ and CBA/Bankwest and Suncorp. The deposits at balance date were earning an average interest rate of 2.19% (2014: 3.47%), while over the year the average interest rate was 3.21% (2014: 3.36%).

TRADE AND OTHER RECEIVABLES Trade and other receivables include trade receivables, other receivables and accrued income, yet to be invoiced. The Parent and the Consolidated Entity's maximum exposure to credit risk for trade receivables at the reporting date by business segment was:

Carrying amount

2015 2014 $’000 $’000

Sponsorship 848 163

Venue hire and related services 371 331

Precinct businesses 579 522

Sydney Opera House performances 378 76

Other 195 445

2,371 1,537

IMPAIRMENT LOSSES The ageing of the Parent and the Consolidated Entity’s trade receivables at reporting date was:

Total Not impaired Considered impaired 2015 $’000 $’000 $’000

Not past due 1,062 1,062 –

< 3 months past due 1,233 1,233 –

3 – 6 months past due 57 57 –

> 6 months past due 19 4 15

2,371 2,356 15

103 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Total Not impaired Considered impaired 2014 $’000 $’000 $’000

Not past due 1,137 1,137 –

< 3 months past due 385 385 –

3 – 6 months past due 13 13 –

> 6 months past due 2 2 –

1,537 1,537 –

The movement in the allowance for impairment in respect of trade receivables during the year was as follows:

2015 2014 $’000 $’000

Opening balance – (46)

Less: bad debts written off – 34

Less: provision release – 12

Add: additional provision (15) –

Balance at end of year (15) –

The allowance account in respect of trade receivables is used to record impairment losses unless the Consolidated Entity is satisfied that no recovery of the amount owing is possible; at that point, the amount is considered irrecoverable and is written off against the financial asset directly.

(b) LIQUIDITY RISK Liquidity risk is the risk that the Consolidated Entity will be unable to meet its payment obligations when they fall due. The Consolidated Entity continuously manages risk through monitoring future cash flows and maturities planning to ensure adequate holding of high quality liquid assets. The objective is to maintain a balance between continuity of funding and flexibility with cash advances held as short-term investments or at call. The following are contractual maturities of financial liabilities for the Parent and the Consolidated Entity:

Carrying Contractual 6 months or 6 to 12 Between 1 2015 amount cash flows less months and 2 years $’000 $’000 $’000 $’000 $’000

Non-derivative financial liabilities

Trade and other payables (14,577) (14,577) (14,577) – –

Derivative financial liabilities

Forward exchange contracts used for hedging:

Outflow – (621) (482) (84) (55)

Inflow – 648 508 85 55

Net carrying amount of 27 – – – – derivatives

(14,550) (14,550) (14,551) 1 –

104 Carrying Contractual 6 months or 6 to 12 Between 1 2014 amount cash flows less months and 2 years $’000 $’000 $’000 $’000 $’000

Non-derivative financial liabilities

Trade and other payables (21,984) (21,984) (21,984) – –

Derivative financial liabilities

Forward exchange contracts used for hedging:

Outflow – (1,451) (454) (963) (34)

Inflow – 1,416 448 935 33

Net carrying amount of (35) – – – – derivatives

(22,019) (22,019) (21,990) (28) (1)

The following table indicates the years in which the cash flows associated with derivatives that are cash flow hedges are expected to occur, and the effect on profit or loss for the Parent and the Consolidated Entity:

Carrying Contractual 6 months or 6 to 12 Between 1 2015 amount cash flows less months and 2 years $’000 $’000 $’000 $’000 $’000

Foreign exchange contracts:

Assets 648 648 507 86 55

Liabilities (621) (621) (482) (84) (55)

27 27 25 2 –

Carrying Contractual 6 months or 6 to 12 Between 1 2014 amount cash flows less months and 2 years $’000 $’000 $’000 $’000 $’000

Foreign exchange contracts:

Assets 1,416 1,416 448 935 33

Liabilities (1,451) (1,451) (454) (963) (34)

(35) (35) (6) (28) (1)

105 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

(c) MARKET RISK The Parent and Consolidated Entity’s exposure to market risk is primarily through currency risk on purchases that are denominated in a currency other than Australian Dollars and other price risks associated with the movement in the unit price of the Hour-Glass investment facilities. The Parent and the Consolidated Entity’s exposure to interest rate risk (other than that affecting the TCorp Hour-Glass cash facility price as set out below) is limited to cash at bank. The impact to the Parent and the Consolidated Entity of a 0.25% change in interest rate for cash at bank is set out below:

Impact on Profit/Loss

Change in 2015 2014 Interest Rate $’000 $’000

Cash at Bank +/- 0.25% 19 28

OTHER PRICE RISK – TCORP HOUR-GLASS FACILITIES. Exposure to "other price risk" primarily arises through the investment in the TCorp Hour-Glass investment facilities, which are held for strategic rather than trading purposes. The Consolidated Entity has no direct equity investments. The Parent and Consolidated holds units in the following Hour-Glass investment trusts:

Impact on Profit/Loss

Investment sector Change in 2015 2014 Facility and horizon Unit Price $’000 $’000

Cash, money market instruments up Hour-Glass cash facility +/- 0.50% 91 118 to 1.5 years

There is no impact on equity in relation to the cash facility. The return on the Hour-Glass cash facility for the year was 2.75% (2.96% in 2014).

(d) CURRENCY RISK

EXPOSURE TO CURRENCY RISK The Parent and the Consolidated Entity's exposure to foreign currency risk at reporting date was as follows, based on notional amounts:

EURO GBP USD CAD SEK 2015 $’000 $’000 $’000 $’000 $’000

Forward exchange contracts* 41 204 376 – –

Net exposure 41 204 376 – –

EURO GBP USD CAD SEK 2014 $’000 $’000 $’000 $’000 $’000

Forward exchange contracts* 222 884 239 105 1

Net exposure 222 884 239 105 1

* The forward exchange contracts relate to future forecast payments.

106 SENSITIVITY ANALYSIS A 2.50 percent strengthening of the Australian dollar against the following currencies at the reporting date would have increased / (decreased) equity and profit or loss of the Parent and the Consolidated Entity by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis was performed on the same basis for 2014.

2015 2014

Equity Profit or loss Equity Profit or loss $’000 $’000 $’000 $’000

Euro 1 – 5 –

GBP 5 – 21 –

USD 9 – 6 –

CAD – – 3 –

15 – 35 –

A 2.50 percent weakening of the Australian dollar against the following currencies at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis was performed on the same basis for 2014.

2015 2014

Equity Profit or loss Equity Profit or loss $’000 $’000 $’000 $’000

Euro (1) – (6) –

GBP (5) – (22) –

USD (10) – (6) –

CAD – – (3) –

(16) - (37) –

107 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

(e) FAIR VALUE

FAIR VALUE VERSUS CARRYING AMOUNT Financial instruments are generally recognised at cost. The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value, because of the short-term nature of many of the financial instruments. The fair value of financial assets and liabilities, together with the carrying amounts shown in the statement of financial position, are as follows:

2015 2014

Carrying Carrying Fair value Fair value amount amount $’000 $’000 $’000 $’000

Trade and other receivables 7,273 7,273 5,920 5,920

Cash and cash equivalents 7 7,121 7 7,121 98,426 98,426

Forward exchange contracts used for hedging: 648 648 1,416 1,416 Assets

Forward exchange contracts used for hedging: (621) (621) (1,451) (1,451) Liabilities

Trade and other payables (14,577) (14,577) (21,984) (21,984)

69,844 69,844 82,327 82,327

(f) FAIR VALUE RECOGNISED IN THE STATEMENT OF FINANCIAL POSITION

Level 1 Level 2 Level 3 Total 2015 $’000 $’000 $’000 $’000

Financial assets at fair value

TCorp Hour-Glass investment facility – 18,218 – 18,218

Derivatives receivables 648 – – 648

648 18,218 – 18,866

Financial liabilities at fair value

Derivatives payable (621) – – (621)

(621) – – (621)

There were no transfers between level 1 and 2 during the year ended 30 June 2015.

108 Level 1 Level 2 Level 3 Total 2014 $’000 $’000 $’000 $’000

Financial assets at fair value

TCorp Hour-Glass investment facility – 23,698 – 23,698

Derivatives receivables 1,416 – – 1,416

1,416 23,698 – 25,114

Financial liabilities at fair value

Derivatives payable (1,451) – – (1,451)

(1,451) – – (1,451)

There were no transfers between level 1 and 2 during the year ended 30 June 2014. The value of the Hour-Glass investments is based on the entity's share of the value of the underlying assets of the facility, based on the market value. All of the Hour-Glass facilities are valued using "redemption" pricing.

Note 22 Fundraising and Bequests

(a) FUNDRAISING The Opera House launched its Annual Giving Fund in March 2007 and is a perpetual fund. The Sydney Opera House Annual Giving Program has been established to raise funds for the following activities (general purpose donations): @@ Create, present and produce world-class work across all art forms @@ Develop our education and community programs @@ Offer free public programs and activities @@ Extend our Indigenous programming and initiatives @@ To support the renewal of the Sydney Opera House Special purpose donations are accepted outside these activities in certain circumstances, generally when the donation is substantial and is given to fund a new initiative. These funds are restricted to specific objectives.

2015 2014 $’000 $’000

Balance 1 July 1,830 1,285

Gross proceeds from fundraising appeals 1,179 1,610

Interest received on proceeds 41 47

Costs of fundraising (252) (396)

Net surplus from fundraising 968 1,261

Application of funds to activities (1,701) (716)

Balance to Accumulated Funds (733) 545

Balance end of year 1,097 1,830

109 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

The net surplus from general purpose fundraising in 2015 of $453k (2014: $904k) was assigned to operating expenses in line with the Annual Giving Program objectives and special purpose net surplus remained in the special purpose fundraising account.

(b) FOSTER BEQUEST The Trust Deed relating to the bequest of the late Colin Foster (Foster bequest) provides that income derived from investment of the funds may be applied to an award for study in fields relating to the training for, and performances of, the art of opera. The transactions relating to the Foster Bequest included within the Consolidated Entity's financial statement were:

2015 2014 $’000 $’000

Balance 1 July 115 114

Interest income 4 4

Distribution (5) (3)

Surplus (1) 1

Balance end of year 114 115

(c) LINDSAY BEQUEST The bequest of the late Joy Lindsay (Lindsay Bequest) provides that income derived from investment of the funds may be awarded annually to one or more financially deserving students of opera, the determination to be left to the discretion of the Opera House. The transactions relating to the Lindsay Bequest included within the Consolidated Entity's financial statement were:

2015 2014 $’000 $’000

Balance 1 July – –

Funds received 628

Interest income 12 –

Distribution – –

Surplus 640 –

Balance end of year 640 –

The accumulated funds at the end of 2015: @@ Annual Giving Program (refer to Note 22(a)) was $1,097k (2014: $1,831k) of which $644k (2014: $926) are special purpose and restricted to specific objectives @@ Foster Bequest (refer to Note 22 (b)) was $114k (2014: $115k) @@ Lindsay Bequest (refer to Note 22 (c) was $640k (2014: nil)

110 Note 23 Commitments

(a) CAPITAL COMMITMENTS Capital expenditures of the Parent and the Consolidated Entity contracted for at the reporting date but not recognised as liabilities are as follows:

2015 2014 $’000 $’000

Payable:

Not later than one year 9,536 29,791

Later than one year and not later than five years 965 –

Total (including GST) 10,501 29,791

Capital commitments contracted for at year-end relate to building development projects. The commitments include input tax credits of $959k recoverable from the Australian Taxation Office (2014: $2,069k).

(b) OPERATING LEASE COMMITMENTS Leases of the Parent and the Consolidated Entity contracted as at the reporting date but not recognised as liabilities or assets are as follows:

2015 2014 $’000 $’000

Payable:

Not later than one year 1,511 700

Later than one year and not later than five years 3,286 1,639

Later than five years 9 9

Total (including GST) 4,806 2,348

The commitments include input tax credits of $437k recoverable from the Australian Taxation Office (2014: $213k).

2015 2014 $’000 $’000

Receivable:

Not later than one year 1,534 939

Later than one year and not later than five years 3,514 1,208

Later than five years 4,603 –

Total including GST 9,651 2,147

The commitments include GST of $877k payable to the Australian Taxation Office (2014: $195k).

111 SYDNEY OPERA HOUSE NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 24 Note 25 Contingent Liabilities Events After and Assets Reporting Date The Consolidated Entity holds construction and On 16 July 2015, the Consolidated Entity maintenance contracts with a range of contractors established a global borrowing limit of $44 undertaking building and maintenance works in million through NSW Treasury Corporation relation to the site, building and related operations. (TCorp). The loan facility was approved These contracts may result in contractors submitting by the NSW Treasurer under the Public variations and claims to the Consolidated Entity that Authorities (Financial Arrangements) Act 1987 reflect a contractor’s opinion in regards to entitlement (PAFA Act). At the signing of this report, the for payments for work associated with those contracts, facility has not yet been utilised. which are in addition to the specified contract sums There are no further events after reporting payable in accordance with those contracts. date that need to be disclosed. At the reporting date, John Holland Construction has made a number of claims relating to the contract between it and the Consolidated Entity in respect of the major Vehicle Access and Pedestrian Safety project (VAPS). It is not possible to estimate the financial effect of the claims at this time, and therefore the value of the claims that are considered contingent liabilities. Management is of the opinion that disclosure of any specific details about claims may be prejudicial to the interests of the Consolidated Entity.

Note 26 Notes to the Statement of Cash Flows Reconciliation of the Net Result to net cash flows from operating activities:

Consolidated Parent

2015 2014 2015 2014 $’000 $’000 $’000 $’000

Net result 4,255 26,365 4,313 26,653

Adjustments for Revenue and Expenses recognised in Equity

Defined benefit plan re-measurements – – (58) (288)

Depreciation, amortisation and make good 10,440 12,346 10,440 12,346

Capital sponsorship – (254) – (254)

Net (profit) / loss on sale of plant and 51 (9) 51 (9) equipment and assets written off

Increase in payables (2,812) 3,521 (2,812) 3,521

Increase / (decrease) in personnel services 2,653 950 2,653 950 and employee-related provisions

(Increase) / decrease in receivables (413) (59) (413) (59)

Decrease in inventories 27 10 27 10

Net cash flow from operating activities 14,201 42,870 14,201 42,870

112 End of Audited Financial Statements

113 Financial Statements

Sydney Opera House Trust Staff Agency

114 116 Statement in accordance with Section 41C

117 Independent Auditor’s Report

118 Statement of Profit or Loss

118 Statement of Comprehensive Income

119 Statement of Financial Position

120 Statement of Changes in Equity

121 Statement of Cash Flows

122 Notes to and forming part of the Financial Statements

122 1. Summary of Significant Accounting Policies

126 2. Revenue

126 3. Employee-Related Expenses

126 4. Trade and Other Receivables

127 5. Other Non-Financial Assets

127 6. Other Payables

128 7. Provisions

129 8. Employee Defined Benefits

136 9. Financial Instruments

137 10. Segment Reporting

137 11. Commitments

137 12. Auditor's Remuneration

138 13. Contingent Liabilities

138 14. Events After the Reporting Date

138 15. Reconciliation of Operating Result to Cash Flows used in Operating Activities

115 Statements Financial

Statement in accordance with Section 41c of the Public Finance and Audit Act, 1983

SYDNEY OPERA HOUSE TRUST STAFF AGENCY Pursuant to Section 41C of the Public Finance and Audit Act, 1983, and in accordance with a resolution of the Sydney Opera House Trust, we state that: 1. In our opinion, the accompanying financial statements exhibit a true and fair view of the financial position of the Sydney Opera House Trust Staff Agency as at 30 June 2015, and financial performance for the year then ended. 2. The financial statements have been prepared in accordance with the provisions of thePublic Finance and Audit Act, 1983, the Public Finance and Audit (General) Regulation 2015 and the Treasurer’s Directions. Further, we are not aware of any circumstances that would render any particulars included in the financial statements to be misleading or inaccurate.

Louise Herron AM Chief Executive Officer

Natasha Collier Chief Financial Officer

Sydney 1 October 2015

116 Independent Auditor’s Report

SYDNEY OPERA HOUSE TRUST STAFF AGENCY To Members of the New South Wales Parliament I have audited the accompanying financial statements of the Sydney Opera House Staff Agency (the Staff Agency), which comprise the statement of financial position as at 30 June 2015, the statement of profit or loss, the statement of other comprehensive income, statement of changes in equity and statement of cash flows, for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information. Opinion In my opinion, the financial statements: @@ give a true and fair view of the financial position of the Staff Agency as at 30 June 2015, and of its financial performance and its cash flows for the year then ended in accordance with Australian Accounting Standards @@ are in accordance with section 41B of the Public Finance and Audit Act 1983 (PF&A Act) and the Public Finance and Audit Regulation 2015. My opinion should be read in conjunction with the rest of this report. The Chief Executive’s Responsibility for the Financial Statements The Chief Executive is responsible for preparing financial statements that give a true and fair view in accordance with Australian Accounting Standards and the PF&A Act, and for such internal control as the Chief Executive determines is necessary to enable the preparation of financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with Australian Auditing Standards. Those Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including an assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair view in order to design audit procedures appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Chief Executive, as well as evaluating the overall presentation of the financial statements. I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. My opinion does not provide assurance: @@ about the future viability of the Staff Agency @@ that it carried out its activities effectively, efficiently and economically @@ about the effectiveness of the internal control @@ about the security and controls over the electronic publication of the audited financial statements on any website where they may be presented @@ about other information which may have been hyperlinked to/from the financial statements. Independence In conducting my audit, I have complied with the independence requirements of the Australian Auditing Standards and other relevant ethical pronouncements. The PF&A Act further promotes independence by: @@ providing that only Parliament, and not the executive government, can remove an Auditor-General @@ mandating the Auditor-General as auditor of public sector agencies, but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office of New South Wales are not compromised in their roles by the possibility of losing clients or income.

Karen Taylor Director, Financial Audit Services 2 October 2015, SYDNEY

117 Statements Financial Beginning of Audited Financial Statements

Sydney Opera House Trust Staff Agency Statement of Profit or Loss for the year ended 30 June 2015

2015 2014 NOTE $’000 $’000

Revenue

Personnel services revenue 2 60,149 17,439

Total Revenue 60,149 17,439

Expenses

Employee-related expenses 3 (60,207) (17,727)

Total Expenses (60,207) (1 7,7 27)

Net Result (58) (288)

The accompanying notes form part of these financial statements. The 2014 comparative numbers are for the period 24 February to 30 June 2014.

Sydney Opera House Trust Staff Agency Statement of Other Comprehensive Income for the year ended 30 June 2015

2015 2014 NOTE $’000 $’000

Net Result (58) (288)

Other Comprehensive Income

Items that will not be reclassified to net result

Defined benefit plan re-measurements 8 58 288

Other Comprehensive Income 58 288

Total Comprehensive Income – –

The accompanying notes form part of these financial statements. The 2014 comparative numbers are for the period 24 February to 30 June 2014.

118 Sydney Opera House Trust Staff Agency Statement of Financial Position as at 30 June 2015

2015 2014 NOTE $’000 $’000

Assets

Current Assets

Trade and other receivables 4 19,187 16,423

Other non-financial assets 5 1,733 2,167

Total Current Assets 20,920 18,590

Liabilities

Current Liabilities

Other Payables 6 4,186 4,262

Provisions 7 15,055 12,625

Total Current Liabilities 19,241 16,887

Non-Current Liabilities

Provisions 7 1,679 1,703

Total Non-Current Liabilities 1,679 1,703

Total Liabilities 20,920 18,590

Net Assets – –

Equity

Accumulated funds – –

Reserves – –

Total Equity – –

The accompanying notes form part of these financial statements.

119 Statements Financial

Sydney Opera House Trust Staff Agency Statement of Changes in Equity for the year ended 30 June 2015

Accumulated Total Funds Equity NOTE $’000 $’000

Balance at 1 July 2014 – –

Net Result (58) (58)

Other Comprehensive Income

Defined benefit re-measurements 8 58 58

Total Comprehensive Income 58 58

Balance at 30 June 2015 – –

Balance at 24 February 2014 – –

Net result for the period (288) (288)

Other Comprehensive Income

Defined benefit re-measurements 8 288 288

Total Comprehensive Income 288 288

Balance at 30 June 2014 – –

The accompanying notes form part of these financial statements.

120 Sydney Opera House Trust Staff Agency Statement of Cash Flows for the year ended 30 June 2015

2015 2014 NOTE $’000 $’000

Cash flows from operating activities

Receipts

Personnel services – –

Total receipts – –

Payments

Employee-related – –

Total payments – –

Net cash from operating activities 15 – –

Net cash from investing activities – –

Net cash from financing activities – –

Net increase in cash – –

Cash and cash equivalents at the beginning of the period – –

Cash and cash equivalents at the end of the period – –

The accompanying notes form part of these financial statements.

121 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 1 (c) BASIS OF MEASUREMENT The financial statements have been prepared Summary of Significant on the historical cost basis, except for the following material items in the statement of Accounting Policies financial position: @@ Defined benefit superannuation liabilities, (a) REPORTING ENTITY which are stated at the present value of the Sydney Opera House Trust Staff Agency (the accrued defined benefit obligations less the Agency), is a NSW Public Service executive fair value of fund assets; and agency under Schedule 1, Part 2 of the @@ Non-current as well as long-term provisions Government Sector Employment Act 2013 no. 40 expected to be settled later than 12 months (GSE Act) and the Administrative Arrangements from the reporting date, which are stated Order 2014. The Agency is a not-for-profit entity at the present value of the future estimated (as profit is not its principal objective and it has obligations for the relevant liabilities. no cash generating units) domiciled in Australia. Its principal office is located at Bennelong Point, GPO Box 4274, Sydney, NSW, 2001. (d) STATEMENT OF COMPLIANCE The Agency commenced operations on 24 The financial statements and notes comply with February 2014 and assumed responsibility Australian Accounting Standards, which include from the Department of Trade and Investment, Australian Accounting Interpretations. Regional Infrastructure and Services (DTIRIS) for the employees (and employee-related liabilities) responsible for provision of services to the (e) INSURANCE Sydney Opera House Trust (the Parent). The The Consolidated Entity’s insurance activities are Agency’s sole objective is to provide personnel primarily conducted through the NSW Treasury services to the Parent. Managed Fund Scheme of self-insurance for The Agency is regarded as a special purpose government agencies. The expense (premium) is entity, established specifically to provide determined by the Fund Manager based on past personnel services to the Parent to enable it to claim experience. exercise its functions. The Agency undertakes no other activities other than the provision of (f) FUNCTIONAL AND personnel services to the Parent. PRESENTATION CURRENCY The Agency is a reporting entity that is All financial information is presented in controlled by the Parent. Accordingly, these Australian dollars, which is the Agency’s financial statements are consolidated into functional currency. the financial statements of the Parent. The consolidated entity is referred to as "Sydney All amounts have been rounded to the nearest Opera House" or "the Opera House". thousand dollars unless otherwise stated.

(b) BASIS OF PREPARATION (g) USE OF ESTIMATES AND JUDGEMENTS The financial statements are general purpose financial statements, which have been prepared The preparation of financial statements on an accruals basis and in accordance with: in conformity with Australian Accounting Standards requires management to make @@ Australian Accounting Standards judgements, estimates and assumptions that (which include Australian Accounting affect the application of accounting policies Interpretations); as well as the reported amounts of assets, @@ the requirements of the Public Finance and liabilities, income and expenses. Actual results Audit Act 1983 and Public Finance and Audit may differ from these estimates. Regulation 2015; and Estimates and underlying assumptions are @@ the Financial Reporting Directions issued reviewed on an ongoing basis. Revisions to by the Treasurer. accounting estimates are recognised in the period in which the estimates are revised The financial statements comply with Australian and in any future periods affected. Accounting Standards (AASBs) issued by the Australian Accounting Standards Board. Information about critical judgements in applying accounting policies that have the most The financial statements were authorised for significant effect on the amounts recognised issue by the Chief Executive Officer (CEO) of in the financial statements are disclosed in the the Sydney Opera House on 1 October 2015. relevant notes to the financial statements.

122 Similarly, information about assumptions and allowance for any impairment of receivables. estimation uncertainties that have a significant Any changes are recognised in the net result risk of resulting in a material adjustment within for the year when impaired, derecognised or the next financial year are included in the notes through the amortisation process. to the financial statements. Short-term receivables with no stated interest Judgements, key assumptions and estimations rate are measured at the original invoice amount management has made are disclosed in the where the effect of discounting is immaterial. relevant notes to the financial statements. II. IMPAIRMENT OF FINANCIAL ASSETS All financial assets, except those measured at (h) COMPARATIVE INFORMATION fair value through profit or loss, are subject to Except when an Accounting Standard permits or an annual review for impairment. An allowance requires otherwise, comparative information is for impairment is established when there is presented in respect of the previous period for objective evidence that the Agency will not be all amounts reported in the financial statements. able to collect all amounts due. As the Agency was created on 24 February 2014, For financial assets carried at amortised cost, the comparative information presented is for the the amount of the allowance is the difference period 24 February 2014 to 30 June 2014. between the asset’s carrying amount and the present value of estimated future cash flows, (i) GOODS AND SERVICES TAX (GST) discounted at the effective interest rate. The amount of the impairment loss is recognised in Revenues and expenses are recognised net of the net result for the year. the amount of GST, except: Any reversals of impairment losses are reversed @@ the amount of GST incurred by the Agency as through the net result for the year, where there a purchaser that is not recoverable from the is objective evidence. Reversals of impairment Australian Taxation Office (ATO) is recognised losses of financial assets carried at amortised as part of an item of expense; and cost cannot result in a carrying amount that @@ receivables and payables are stated with the exceeds what the carrying amount would have amount of GST included. been had there not been an impairment loss.

Cash flows are included in the statement of III. PAYABLES cash flows on a gross basis. However, the GST These amounts represent liabilities for goods components of cash flows arising from investing and services provided to the Agency and other and financing activities, which is recoverable amounts. Payables are recognised initially at from, or payable to, the ATO, are classified as fair value, usually based on the transaction operating cash flows. cost or face value. Subsequent measurement is at amortised cost using the effective interest (j) REVENUE method. Short-term payables with no stated interest rate are measured at the original invoice Revenue is income that arises in the course of amount where the effect of discounting is ordinary activities. Revenue is recognised and immaterial. measured at the fair value of the consideration received or receivable to the extent that it is Payables include accrued wages, salaries and probable that the economic benefits will flow related on-costs (such as payroll tax and fringe to the Agency and the revenue can be reliably benefits tax) when there is certainty as to the measured. Revenue is not considered reliably amount and timing of settlement. measurable until all contingencies relating to the supply of personnel services are resolved. IV. DERECOGNITION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES Personnel services revenue is income for A financial asset is derecognised when the services provided to NSW government agencies contractual rights to the cash flows from the outside the general government sector. This is financial assets expire; or if the Agency transfers offset by a corresponding expense. the financial asset: @@ where substantially all the risks and rewards (k) FINANCIAL INSTRUMENTS have been transferred; or

I. RECEIVABLES @@ where the Agency has not transferred substantially all the risks and rewards, if the Receivables are non-derivative financial assets Agency has not retained control. with fixed or determinable payments that are not quoted in an active market. These financial Where the Agency has neither transferred nor assets are recognised initially at fair value, retained substantially all the risks and rewards usually based on the transaction cost or face or transferred control, the asset is recognised value. Subsequent measurement is at amortised to the extent of the Agency’s continuing cost using the effective interest method, less an involvement in the asset.

123 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

A financial liability is derecognised when the Benefits and NSW TC 14/05 Accounting for obligation specified in the contract is discharged Superannuation, and are recognised as an or cancelled or expires. expense when employees have rendered services entitling them to the contributions. Prepaid contributions are recognised as an (l) EMPLOYEE BENEFITS asset to the extent that a cash refund or a reduction in future payments is available. I. WAGES AND SALARIES, ANNUAL LEAVE, AND ASSOCIATED ON-COSTS Contributions to a defined contribution plan Salaries and wages (including non-monetary that is due more than 12 months after the end of benefits) that are expected to be settled wholly the period in which the employees render the within 12 months after the end of the period service are discounted to their present value. in which the employees render the service are recognised and measured at the undiscounted IV. DEFINED BENEFIT amounts of the benefits. SUPERANNUATION PLANS Defined benefit superannuation plans provide Annual leave is not expected to be settled wholly defined lump sum benefits based on years of before 12 months after the end of the annual service and final average salary. reporting period in which the employees render the related service. As such, it is required to be The Agency accounts for defined benefit measured at present value in accordance with superannuation plans in accordance with AASB AASB 119 Employee Benefits (although short- 119 Employee Benefitsand TC 14/05 Accounting cut methods are permitted) and NSW TC 15-09 for Superannuation. A liability or asset in respect Accounting for Long Service Leave and Annual of defined benefit superannuation plans is Leave. Actuarial advice obtained by NSW recognised in the statement of financial position, Treasury has confirmed that the use of a nominal and is measured as the present value of defined approach (using 7.9% of the nominal value of benefit obligation at the reporting date less the the long term portion of annual leave) can be fair value of the superannuation fund assets at that used to approximate the present value of the date and any unrecognised past service costs. annual leave liability. The Agency has assessed The calculation of defined benefit obligations is the actuarial advice based on the Agency’s performed annually by a qualified actuary using circumstances. the PUC method. When determining the liability, Unused non-vesting sick leave does not give rise consideration is given to future salary and wage to a liability, as it is not considered probable that levels, experience of employee departures and sick leave taken in the future will be greater than periods of service. Prepaid contributions are the benefits accrued in the future. recognised as an asset to the extent that cash refund/reduction in future payments is available. II. LONG SERVICE LEAVE When the calculation results in a potential asset The liability for long service leave is measured for the Agency, the recognised asset is limited to at present value using the Projected Unit the present value of economic benefits available Credit (PUC) method in accordance with AASB in the form of any future refunds from the plan 119 Employee Benefits and NSW TC 15-09 or reductions in future contributions to the plan. Accounting for Long Service Leave and Annual To calculate the present value of economic Leave. Market yields on Australian Government benefits, consideration is given to any applicable bonds are used to discount long service leave. minimum funding requirements. This rate represents the yield that matches Re-measurements of the net defined benefit as closely the estimated timing of expected liability, which comprise actuarial gains and payments. losses, the return on plan assets (excluding The bond rate used at the reporting date was interest) and the effect of the asset ceiling (if any, a 10-year government bond rate of 3.01% excluding interest), are recognised immediately (2014 3.54%). in other comprehensive income. The Agency determines the net interest expense (income) Amounts expected to be settled wholly within on the net defined benefit liability (asset) for 12 months of reporting date are not discounted. the period by applying the discount rate used to measure the defined benefit obligation at the III. DEFINED CONTRIBUTION beginning of the period to the then-net defined SUPERANNUATION PLANS benefit liability (asset), taking into account any A defined contribution superannuation plan is changes in the net defined benefit liability (asset) a post-employment benefit plan whereby the during the period as a result of contributions and Agency pays fixed contributions into a separate benefit payments. Net interest expense and other entity but has no legal or constructive obligation expenses related to defined benefit plans are to pay any further amounts. recognised in profit or loss. Contributions to defined contribution When the benefits of a plan are changed or superannuation plans are recorded in when a plan is curtailed, the resulting change in accordance with AASB 119 Employee benefit that relates to past service or the gain or

124 loss on curtailment is recognised immediately transfers of programs / functions and parts in profit or loss. The Agency recognises gains thereof between NSW public sector entities and losses on the settlement of a defined benefit and ‘equity appropriations’ are designated or plan when the settlement occurs. required by Australian Accounting Standards to be treated as contributions by owners and AASB 119 Employee Benefits does not specify recognised as an adjustment to 'Accumulated whether the current and non-current portions Funds'. This treatment is consistent with AASB of assets and liabilities arising from post- 1004 Contributions and Australian Interpretation employment benefits are required to be 1038 Contributions by Owners Made to Wholly- disclosed because at times the distinctions Owned Public Sector Entities. may be arbitrary. The liability is disclosed as non-current as this best reflects when the Transfers arising from an administrative liability is likely to be settled. restructure involving not-for-profit and for- profit government entities are recognised at the V. TERMINATION BENEFITS amount at which the assets and liabilities were Termination benefits are recognised as an recognised by the transferor immediately prior expense when the Agency is demonstrably to the restructure. Subject to below, in most committed, without realistic possibility of instances this will approximate fair value. withdrawal, to a formal detailed plan either All other equity transfers are recognised at to terminate employment before the normal fair value, except for intangibles. Where an retirement age, or to provide termination intangible has been recognised at (amortised) benefits as a result of an offer made to cost by the transferor because there is no encourage voluntary redundancy. Termination active market, the Agency recognises the asset benefits are only recognised if it is probable at the transferor’s carrying amount. Where that the offer will be accepted, and the number the transferor is prohibited from recognising of acceptances can be estimated reliably. internally generated intangibles, the Agency Termination benefits falling due more than does not recognise that asset. 12 months after reporting date are discounted to present value. (o) NEW OR REVISED AUSTRALIAN ACCOUNTING STANDARDS AND (m) FAIR VALUE HIERARCHY INTERPRETATIONS

A number of the Agency’s accounting policies I. EFFECTIVE FOR THE FIRST TIME IN 2014-15 and disclosures require the measurement of The accounting policies applied in 2014-15 are fair values, for both financial and non-financial consistent with those of the previous financial assets and liabilities. When measuring fair value, year. There are no new or revised Australian the valuation technique used maximises the use Accounting standards taking affect for of relevant observable inputs and minimises the accounting periods beginning after 1 July 2014, use of unobservable inputs. Under AASB 13 Fair which have an impact on the Agency. Value Measurement, the Agency categorises, for disclosure purposes, the valuation techniques II. ISSUED BUT NOT YET EFFECTIVE based on the inputs used in the valuation techniques as follows: NSW public sector entities are not permitted to early adopt new Australian Accounting @@ Level 1 – quoted prices in active markets for Standards, unless Treasury determines otherwise. identical assets / liabilities that the Agency can access at the measurement date. The following new Australian Accounting Standards have not been applied and are not @@ Level 2 – inputs other than quoted prices yet effective, but will be relevant to the Agency included within Level 1 that are observable, as discussed below. either directly or indirectly. @@ AASB 9 Financial Instruments, AASB @@ Level 3 – inputs that are not based 2010-7, AASB 2014-1, AASB 2014-7 and on observable market data AASB 2014-8 Amendments to Australian (unobservable inputs). Accounting Standards arising from AASB 9 AASB 9 introduces new requirements for the The Agency recognises transfers between levels classification and measurement of financial of the fair value hierarchy at the end of the assets and liabilities. These requirements reporting period during which the change has improve and simplify the approach for occurred. Refer Note 8 and Note 9 for further classification and measurement of financial disclosures regarding fair value measurements assets. The Agency has not yet assessed the of financial and non-financial assets. full impact of AASB 9, as this standard is not mandatory before 1 January 2018. (n) EQUITY TRANSFERS

The transfer of net assets between entities as a result of an administrative restructure,

125 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 2 Revenue

2015 2014 $’000 $’000

Personnel services revenue 60,149 17,439

60,149 17,439

Note 3 Employee-Related Expenses

2015 2014 $’000 $’000

Salaries and wages (including employee leave) 52,433 16,001

Superannuation – defined contribution plans 4,042 1,342

Superannuation – defined benefit plans 506 (312)

Payroll tax and fringe benefits tax 3,039 1,031

Workers compensation insurance 101 (357)

Other expenses 86 22

60,207 1 7,7 27

Note 4 Trade and Other Receivables

2015 2014 $’000 $’000

Current

Personnel service receivable 19,187 16,423

19,187 16,423

Details regarding the Agency’s financial risk management policies are disclosed in Note 9.

126 Note 5 Other Non-Financial Assets

2015 2014 $’000 $’000

Prepaid Superannuation 1,733 2,167

1,733 2,167

Prepaid Superannuation The funding position at 30 June 2015 of the three defined benefits schemes related to personnel services received has been advised by Pillar Administration. These are the State Authorities Superannuation Scheme (SASS), the State Superannuation Scheme (SSS) and the State Authorities Non Contributory Superannuation Scheme (SANCS).

Estimated Reserve Account Funds Accrued Liability Prepaid Contributions

2015 2014 2015 2014 2015 2014 $’000 $’000 $’000 $’000 $’000 $’000

Defined Benefit Asset

SSS 49,418 46,681 (47,709) (44,537) 1,709 2,144

SANCS 1,561 1,572 (1,537) (1,549) 24 23

50,979 48,253 (49,246) (46,086) 1,733 2,167

Defined Benefit Liability

SASS 9,229 8,195 (9,618) (8,583) (389) (388)

9,229 8,195 (9,618) (8,583) (389) (388)

Total 60,208 56,448 (58,864) (54,669) 1,344 1,779

The defined benefit liability for the Consolidated Entity’s defined benefit plans has been included in payables – employee benefits (refer to Note 6).

Note 6 Other Payables

2015 2014 $’000 $’000

Accrued salaries and wages and associated oncosts 2,129 2,148

GST payable 1,668 1,726

Defined benefits liability 389 388

4,186 4,262

Details regarding the Agency’s financial risk management policies are disclosed in Note 9.

127 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 7 Provisions

2015 2014 Current and Non-Current Provisions $’000 $’000

Current Provisions

Employee benefits and related oncosts

Recreation leave 3,937 3,648

Long service leave 8,557 8,108

Payroll tax 274 263

Redundancies 2,194 520

Fringe benefits tax 93 86

15,055 12,625

Non-Current Provisions

Employee benefits and related oncosts

Long service leave 1,236 1,283

Payroll tax 443 420

1,679 1,703

Total Provisions 16,734 14,328

Expected annual recreation leave to be taken within the next 12 months is $2,740k, with the remainder of $1,197k after 12 months.

2015 2014 $’000 $’000

Aggregate employee benefits and related oncosts

Provisions – current 15,055 12,625

Provisions – non current 1,679 1,703

Accrued salaries, wages and (Note 6) 2,518 2,536

19,252 16,864

128 An actuarial investigation of the Fund is Note 8 performed every three years. The last actuarial Employee Defined Benefits investigation was performed as at 30 June 2012. The next actuarial investigation is due as at 30 June 2015 and the report is expected to be NATURE OF THE BENEFITS released by December 2015. PROVIDED BY THE FUND

The SAS Trustee Corporation (STC) Pooled DESCRIPTION OF OTHER ENTITIES' Fund (the Fund) holds in trust the investments RESPONSIBILITIES FOR THE of the closed NSW public sector superannuation GOVERNANCE OF THE FUND schemes: The Fund's Trustee is responsible for the @@ State Authorities Superannuation Scheme governance of the Fund. The Trustee has a legal (SASS) obligation to act solely in the best interests of Fund beneficiaries. The Trustee has the following roles: @@ State Superannuation Scheme (SSS) @ Administration of the Fund and payment @@ Police Superannuation Scheme (PSS) @ to the beneficiaries from Fund assets when @@ State Authorities Non-contributory required in accordance with the Fund rules; Superannuation Scheme (SANCS). @@ Management and investment of the Fund These schemes are all defined benefit schemes assets; and – at least a component of the final benefit is derived from a multiple of member salary and @@ Compliance with other applicable years of membership. Members receive lump regulations. sum or pension benefits on retirement, death, disablement and withdrawal. DESCRIPTION OF RISKS All the schemes are closed to new members. There are a number of risks to which the Fund exposes the Employer. The more significant risks DESCRIPTION OF THE relating to the defined benefits are: REGULATORY FRAMEWORK @@ Investment risk – The risk that investment The schemes in the Fund are established and returns will be lower than assumed and the governed by the following NSW legislation: Employer will need to increase contributions Superannuation Act 1916, State Authorities to offset this shortfall. Superannuation Act 1987, Police Regulation @@ Longevity risk – The risk that pensioners (Superannuation) Act 1906, State Authorities live longer than assumed, increasing future Non-Contributory Superannuation Scheme pensions. Act 1987, and their associated regulations. @@ Pension indexation risk – The risk that The schemes in the Fund are exempt public pensions will increase at a rate greater than sector superannuation schemes under the assumed, increasing future pensions. Commonwealth Superannuation Industry (Supervision) Act 1993 (SIS). The SIS Legislation @@ Salary growth risk – The risk that wages or treats exempt public sector superannuation funds salaries (on which future benefit amounts for as complying funds for concessional taxation and active members will be based) will rise more superannuation guarantee purposes. rapidly than assumed, increasing defined benefit amounts and thereby requiring Under a Heads of Government agreement, the additional employer contributions. New South Wales Government undertakes to ensure that the Fund will conform to the @@ Legislative risk – The risk is that legislative principles of the Commonwealth’s retirement changes could be made which increase the incomes policy relating to preservation, vesting, cost of providing the defined benefits. and reporting to members and that member The defined benefit fund assets are invested benefits are adequately protected. with independent fund managers and have a The New South Wales Government prudentially diversified asset mix. The Fund has no significant monitors and audits the Fund and the Trustee concentration of investment risk or liquidity risk. Board activities in a manner consistent with the prudential controls of the SIS legislation. DESCRIPTION OF These provisions are in addition to other SIGNIFICANT EVENTS legislative obligations on the Trustee Board and internal processes that monitor the Trustee There were no Funds amendments, curtailments, Board’s adherence to the principles of the or settlements during the year. Commonwealth’s retirement incomes policy.

129 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

RECONCILIATION OF THE NET DEFINED BENEFIT LIABILITY / (ASSET)

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Net Defined Benefit Liability / (Asset) at start of year 388 (23) (2,144) (1,779)

Current service cost 289 67 201 557

Net interest on the net defined benefit liability / (asset) 14 (1) (77) (64)

Actual return on Fund assets less interest income (657) (133) (4,671) (5,461)

Actuarial (gains) / losses arising from changes in 86 7 (22) 71 demographic assumptions

Actuarial (gains) / losses arising from changes in financial 178 37 3,152 3,367 assumptions

Actuarial (gains) / losses arising from liability experience 91 (43) 63 111

Adjustment for effect of asset ceiling – 65 1,789 1,854

Net Defined Benefit Liability / (Asset) at end of year 389 (24) (1,709) (1,344)

RECONCILIATION OF THE FAIR VALUE OF FUND ASSETS

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Fair Value of Fund assets at beginning of the year 8,195 1,702 58,320 68,217

Interest income 279 58 2,046 2,383

Actual return on Fund assets less interest income 657 133 4,671 5,461

Contributions by participants 101 – 98 199

Benefits paid (51) (174) (2,083) (2,308)

Taxes, premiums and expenses paid 47 41 209 297

Fair Value of Fund assets at end of the year 9,228 1,760 63,261 74,249

130 RECONCILIATION OF THE DEFINED BENEFIT OBLIGATION

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Present Value of Defined Benefit Obligations 8,584 1,549 44,537 54,670 at beginning of the year

Current service cost 289 67 201 557

Interest cost 293 53 1,554 1,900

Contributions by participants 101 – 98 199

Actuarial (gains) / losses arising from changes in 86 7 (22) 71 demographic assumptions

Actuarial (gains) / losses arising from changes in financial 178 37 3,152 3,367 assumptions

Actuarial (gains) / losses arising from liability experience 91 (43) 63 111

Benefits paid (51) (174) (2,083) (2,308)

Taxes, premiums and expenses paid 47 41 209 297

Present Value of Defined Benefit Obligations 9,618 1,537 47,709 58,864 at end of the year

RECONCILIATION OF THE EFFECT OF THE ASSET CEILING

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Adjustment for effect of asset ceiling – 129 11,638 11,767 at beginning of the year

Interest cost on adjustment for effect of asset ceiling – 4 416 420

Change in the effect of asset ceiling – 65 1,789 1,854

Adjustment for effect of asset ceiling – 198 13,843 14,041 at end of the year

The adjustment for the effect of asset ceiling has been determined based on the maximum economic benefit available to the entity in the form of reductions in future employer contributions.

131 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

FAIR VALUE OF THE FUND ASSETS All Fund assets are invested by STC at arm’s length through independent fund managers, and assets are not separately invested for each entity and it is not possible or appropriate to disaggregate and attribute fund assets to individual entities. As such, the disclosures below relate to total assets of the Fund. As at 30 June 2015

Total Level 1 Level 2 Level 3 Asset Category $M $M $M $M

Short-term securities 2,642 96 2,546 –

Australian fixed interest 2,657 1 2,639 17

International fixed interest 1,004 – 1,004 –

Australian equities 10,407 9,899 504 4

International equities 13,111 9,963 2,585 563

Property 3,452 948 718 1,786

Alternatives 7,170 622 3,020 3,528

Total ** 40,443 21,529 13,016 5,898

The percentage invested in each asset class at the reporting date is:

Short-term securities 6.5%

Australian fixed interest 6.6%

International fixed interest 2.5%

Australian equities 25.7%

International equities 32.4%

Property 8.6%

Alternatives 17.7%

Total 100%

** Additional to the assets disclosed above, at 30 June 2015 the Fund has provisions for receivables / (payables) estimated to be around $1.74 billion. This gives a total estimated asset balance of $42.2 billion.

Level 1 – quoted prices in active markets for identical assets or liabilities. The assets in this level are listed shares; listed unit trusts. Level 2 – inputs other than quoted prices observable for the asset or liability either directly or indirectly. The assets in this level are cash; notes; government, semi-government and corporate bonds; unlisted trusts where quoted prices are available in active markets for identical assets or liabilities. Level 3 – inputs for the asset or liability that are not based on observable market data. The assets in this level are unlisted property; unlisted shares; unlisted infrastructure; distressed debt; hedge funds. Derivatives, including futures and options, can be used by investment managers. However, each manager's investment mandate clearly states that derivatives may only be used to facilitate efficient cashflow management or to hedge the portfolio against market movements and cannot be used for speculative purposes or gearing of the investment portfolio. As such managers make limited use of derivatives.

132 FAIR VALUE OF ENTITY’S OWN FINANCIAL INSTRUMENTS The disclosures below relate to total assets of the Fund. The fair value of the Fund assets as at 30 June 2015 includes $209.2 million in NSW Government bonds. Of the direct properties owned by the Fund: @@ GPNSW occupies part of a property owned by the Fund with a fair value of $159 million (30 June 2014: $153 million). @@ NSW Ambulance occupies part of a property 50% owned by the Fund with a fair value of $204 million (30 June 2014: $205 million).

SIGNIFICANT ACTUARIAL ASSUMPTIONS AT 30 JUNE 2015

Assumption 2015

Discount rate 3.03% pa

2.50% pa 1 July 2015 to 30 June 2019, 3.50% pa from 1 July 2019 Salary increase rate to 30 June 2021, 3.00% pa from 1 July 2021 to 30 June 2025, (excluding promotional increases) and 3.50% pa thereafter

2.50% pa to 30 June 2016, 2.75% pa from 1 July 2016 to 30 June 2018, Rate of CPI increase and 2.50% pa thereafter

The pensioner mortality assumptions are as per the 2012 actuarial investigation of the Pooled Fund. These assumptions are disclosed in Pensioner mortality the actuarial investigation report available from the trustee's website. The report shows the pension mortality rates for each age.

SENSITIVITY ANALYSIS The entity’s total defined benefit obligation as at 30 June 2015 under several scenarios is presented below. The total defined benefit obligation disclosed is inclusive of the contribution tax provision that is calculated based on the asset level at 30 June 2015. Scenarios A to F relate to sensitivity of the total defined benefit obligation to economic assumptions, and scenarios G and H relate to sensitivity to demographic assumptions.

Scenario A Scenario B Base Case -1.0% discount rate +1.0% discount rate

Discount Rate 3.03% 2.03% 4.03%

Rate of CPI increase as above as above as above

Salary inflation rate as above as above as above

Defined benefit obligation ($'000) 58,864 65,755 53,1 75

Scenario C Scenario D Base Case +0.5% rate of CPI increase -0.5% rate of CPI increase

Discount rate as above as above as above

Rate of CPI increase as above above rates plus 0.5% pa above rates less 0.5% pa

Salary inflation rate as above as above as above

Defined benefit obligation ($'000) 58,864 61,922 56,062

133 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Scenario E Scenario F Base Case +0.5% salary increase rate -0.5% salary increase rate

Discount rate as above as above as above

Rate of CPI increase as above as above as above

Salary inflation rate as above above rates plus 0.5% pa above rates plus 0.5% pa

Defined benefit obligation ($'000) 58,864 59,116 58,622

Scenario G Scenario H Base Case +5% pensioner -5% pensioner mortality rates mortality rates

Defined benefit obligation ($'000) 58,864 58,265 59,501

The defined benefit obligation has been recalculated by changing the assumptions as outlined above, whilst retaining all other assumptions.

ASSET-LIABILITY MATCHING The Trustee monitors its asset-liability risk continuously in setting its investment strategy. It also monitors cash flows to manage liquidity requirements. No explicit asset-liability matching strategy is used by the Trustee.

FUNDING ARRANGEMENTS Funding arrangements are reviewed at least every three years following the release of the triennial actuarial review and were last reviewed following completion of the triennial review as at 30 June 2012. Contribution rates are set after discussions between the employer, STC and NSW Treasury. Funding positions are reviewed annually and funding arrangements may be adjusted as required after each annual review.

SURPLUS / DEFICIT The following is a summary of the 30 June 2015 financial position of the Fund calculated in accordance with AAS 25 Financial Reporting by Superannuation Plans:

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Accrued benefits* 8,318 1,261 27,958 37,537

Net market value of Fund assets (9,229) (1,760) (63,261) (74,250)

Net (surplus) / deficit (911) (499) (35,303) (36,713)

* There is no allowance for a contribution tax provision with the accrued benefits figure for AAS 25. Allowance for contributions tax is made when setting the contribution rates.

CONTRIBUTION RECOMMENDATIONS Recommended contribution rates for the Agency for the current year are:

SASS SANCS SSS

Multiple of member contributions % member salary multiple of member contributions

– – –

134 ECONOMIC ASSUMPTIONS The economic assumptions adopted for the 30 June 2012 actuarial investigation of the Fund are:

Weighted average assumptions

Expected rate of return on Fund assets backing current pension liabilities 8.3% pa

Expected rate of return on Fund assets backing other liabilities 7.3% pa

2.7% pa to 30 June 2018 Expected salary increase rate then 4.0% pa

Expected rate of CPI increase 2.5% pa

EXPECTED CONTRIBUTIONS FOR 2015

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Expected employer contributions – – – –

MATURITY PROFILE OF DEFINED BENEFIT OBLIGATION The weighted average duration of the defined benefit obligation is 11.6 years.

PROFIT AND LOSS IMPACT

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Current service cost 289 67 201 557

Net interest 14 (1) (77) (64)

Defined benefit cost 303 66 124 493

OTHER COMPREHENSIVE INCOME

SASS SANCS SSS Total $’000 $’000 $’000 $’000

Actuarial (gains) / losses on liabilities 355 2 3,193 3,550

Actual return on Fund assets less interest income (657) (134) (4,671) (5,462)

Change in the effect of asset ceiling – 65 1,789 1,854

Total re-measurement in (302) (67) 311 (58) Other Comprehensive Income

135 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 9 Financial Instruments The Agency’s principal financial instruments A formal business risk assessment is undertaken are outlined below. These financial instruments to identify and analyse the risks faced by the arise directly from operations or are required Parent and the Agency, to determine appropriate to finance the operations. The Agency does controls and monitoring mechanisms, and not enter into or trade financial instruments, formulate the internal audit program. Risks including derivative financial instruments, for are regularly reviewed by management and speculative purposes. reported to the Audit and Risk Committee in conjunction with standard reporting systems The Agency’s main risks arising from financial and procedures. Internal Audit undertakes both instruments are outlined below, together with regular and ad hoc reviews of management objectives, policies and processes for measuring controls and procedures, the results of which and managing risk. Further quantitative and are reported to the Audit and Risk Committee. qualitative disclosures are included throughout In addition the Audit and Risk Committee seeks these financial statements. reports of management on a range of risk The Opera House has established an Audit and management activities. Risk Committee, which has overall responsibility for the establishment and oversight of the risk management framework of the Parent and FAIR VALUES the Agency and approves selected policies for The fair value of financial assets and financial managing risks. Compliance with policies is liabilities must be estimated for recognition and reviewed by the Internal Auditors and the Audit measurement or for disclosure purposes. All and Risk Committee on a continuous basis. financial instruments are subsequently carried at The chair of the Audit and Risk Committee is amortised cost. For trade and other receivables an independent member of the Trust, and the and trade and other payables, the carrying committee regularly reports to the Trust amount is considered to approximate its fair on their activities. value. This is because of the short-term nature of these financial assets and financial liabilities.

FINANCIAL INSTRUMENT CATEGORIES

Carrying Carrying Amount Amount Financial Instrument Categories NOTE Measurement basis 2015 2014 $’000 $’000

Financial Assets

Receivables and prepayments 4,5 Amortised cost 20,920 18,590

Financial Liabilities

Trade and other payables 7 Amortised cost (19,252) (16,864)

136 CREDIT RISK Credit risk arises when there is the possibility that default on their contractual obligations. The maximum exposure to credit risk is represented by the carrying amounts of the financial assets. All receivables of the Agency are for services provided to the Parent, comprising salaries and entitlements of employee services provided. There are no financial assets that are past due or impaired. No collateral is held by the Agency and it has not granted any financial guarantees.

LIQUIDITY RISK Liquidity risk is the risk that the Agency will be unable to meet its payment obligations when they fall due. The financial liabilities recognised are for amounts due to be paid in the future for employee services received. Amounts owing to employees are settled as they fall due. The Agency is not exposed to interest rate risk and amounts are expected to be settled within 12 months. During the current period there were no defaults or breaches on any amounts payable. No assets have been pledged as collateral.

MARKET RISK Market risk is the risk that the fair value of the financial instrument will fluctuate because of a change in market prices. The Agency does not have exposure to market risk as all financial instruments relate to employee payments made by the Parent. The Agency has no exposure to foreign currency or interest rate risk and does not enter into commodity contracts.

Note 10 Segment Reporting The Agency operates exclusively as one business segment in the provision of personnel services to the Parent. Its area of operations is wholly within the State of New South Wales.

Note 11 Commitments There were no commitments contracted for at reporting date.

Note 12 Auditor’s Remuneration The audit fee for the statutory audit of the Agency is assumed by the Parent. The audit fee for the Agency for the period ended 30 June 2015 was nil.

137 SYDNEY OPERA HOUSE TRUST STAFF AGENCY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 13 Contingent Liabilities At reporting date there were no legal matters outstanding or other contingent liabilities which are expected to result in material claim against the Agency.

Note 14 Events After the Reporting Date There are no events after reporting date, which needs to be disclosed.

Note 15 Reconciliation of Operating Result to Cash Flows used in Operating Activities

2015 2014 $’000 $’000

Net result (58) (288)

Adjustments for Revenue and Expenses recognised in Equity

Defined benefit plan re-measurements 58 288

Movement in applicable statement of financial position items

(Increase) / decrease in receivables and prepayments (2,330) (18,590)

Increase / (decrease) in employee-related and other payables (76) 4,262

Increase / (decrease) in provisions 2,406 14,328

Net cash from operating activities – –

138 End of Audited Financial Statements

139 Government Reporting

For the year ended 30 June 2015

140 142 Account Payment Performance Indicators

143 Budget

144 Code of Conduct

144 Consultants

144 Credit Card Use

144 Customer Experience

147 Disability Action Plan

148 Electronic Service Delivery

148 Environmental Sustainability

154 Equal Employment Opportunity

156 Fire Safety

156 Government Information and Public Access (GIPA) Act 2009

159 Heritage Management

159 Indigenous

160 Insurance

161 Investment Performance Measure

161 Land Title Holdings

161 Legal

161 Multicultural Policies and Services Plan

163 Overseas Travel

166 Privacy Management

166 Public Interest Disclosures

167 Risk Management

169 Senior Executive Service

170 Wage and Salary Movements

170 Workplace Health and Safety

141 Reporting Government Account Payment Performance Indicators The schedule of accounts payable for the four quarters of the financial year and the amounts involved are as follows:

AGED ANALYSIS AT THE END OF EACH QUARTER

Quarter Current Less than 30 30 to 60 days 60 to 90 days More than 90 (i.e. within due date) days overdue overdue overdue days overdue $’000 $’000 $’000 $’000 $’000

All suppliers

September 21,490 1,889 727 295 181 December 24,052 3,753 427 199 150 March 23,082 2,715 925 306 307 June 21,922 2,611 668 199 314

Small business suppliers

September 286 14 3 0 0 December 418 4 0 0 0 March 274 6 3 0 0 June 219 27 3 2 0

ACCOUNTS DUE OR PAID WITHIN EACH QUARTER

Measure Sept Dec Mar June

All Suppliers

Number of accounts due for payment 3,553 3,914 4,792 5,318

Number of accounts paid on time 2,359 2,423 2,791 3,322

Percentage of accounts paid on time 66% 62% 58% 62% (based on number of accounts)

Dollar amount of accounts due for payment 24,582,702 28,581,061 27,334,795 25,715,064

Dollar amount accounts paid on time 21,490,288 24,051,965 23,081,564 21,922,443

Percentage of accounts paid on time 87% 84% 84% 85% (based on $)

Number of payments for interest on overdue 2 0 1 2 accounts

Interest paid on overdue accounts 65 0 38 101

In accordance with the payments of accounts circular (NSW Treasury Circular NSW TC 11/12), Sydney Opera House Trust (SOHT) is required to pay interest on late payment of accounts from small businesses. There are 45 small businesses registered with SOHT as at 30 June 2015 with $204 being paid on overdue accounts. Communications continue with suppliers inviting small businesses to register via remittances. The SOH website under Corporate Information, Doing Business with SOH makes reference to small businesses.

142 ACCOUNTS DUE OR PAID WITHIN EACH QUARTER

Measure Sept Dec Mar June

Small business suppliers

Number of accounts due for payment 115 86 59 41

Number of accounts paid on time 109 79 56 37

Percentage of accounts paid on time 95% 92% 95% 90% (based on number of accounts)

Dollar amount of accounts due for payment 302,904 422,832 282,941 249,979

Dollar amount accounts paid on time 286,370 417,795 275,601 218,884

Percentage of accounts paid on time 95% 99% 97% 88% (based on $)

Number of payments for interest on 2 0 1 2 overdue accounts

Interest paid on overdue accounts 65 0 38 101

As at reporting date SOHT had 45 registered small businesses. Five businesses were eligible for interest on overdue accounts. The total interest paid was $204 as per above schedule. Payment delays resulted from difficulties in capturing invoices when purchase orders were not raised in the eProcurement system at the appropriate time. Problem areas are being reviewed and addressed with further process improvements in the Financial and eProcurement systems upgrade.

Budget

Year ended Year ended 30 June 2015 30 June 2016 $'000 $'000

General Operations

Revenues:

NSW Treasury endowment and other funding 13,622 13,068

Self-generated revenue 92,273 96,597

Total Revenue – General Operations 105,895 109,665

Expenses:

People expenses 49,502 53,367

Other expenses 57,914 57,179

Total Expenses – General Operations 107,416 110,546

Profit / (Loss) from General Operations (1,521) (881)

Other Activities

Revenues:

Building maintenance – government grant 25,853 33,185

Building development – government grant and other funding 18,327 -

Total Revenue – Other Activities 44,180 33,185

Expenses:

Depreciation and amortisation 12,186 10,546

People and other expenses 42,626 32,489

Total Expenses – Other Activities 54,812 43,035

Profit / (Loss) from Other Activities (10,632) (9,850)

Net Result for the year (12,153) (10,731) 143 Reporting Government Code of Conduct The Code of Conduct is designed to ensure the actions and decisions of all staff are consistent with the vision, goals and standards of the Opera House. The Code was revised and relaunched in May 2012 and covers the following key areas: integrity and honesty; ethical standards; fair and equitable behaviour; safety and security; records and information; public comment; outside employment; political and community participation; post-separation employment; and child protection. Face-to-face training was provided to all staff between June and December 2012 to support the implementation of the Code. This was further supported by an e-learning module deployed in June 2013. All employees are required to complete this module on an annual basis. The Opera House Trustees have a separate Trustee Code of Conduct, which outlines expected standards of behaviour. It encompasses: accountability for public expenditure and decision-making; use of public resources; use of official information; the designation of an official spokesperson for the Trust; gifts and benefits; disclosure of interests; recognising and managing conflicts of interest; reporting suspected corrupt conduct; and relevant legislation. The Trust endorsed the code in April 2013. The Trust Conservation Council, which has external members and specialists, also has a separate Code of Conduct that provides guidelines on the values and behaviours expected of Council Members.

Consultants In accordance with NSW Government guidelines, projects for which consultants received more than $50,000 are listed individually. Those involving payments of $50,000 or less are grouped under a total figure. AIMIA Proprietary Loyalty Australia – Strategy consultation and recommendation on a loyalty program: $75,000. Fergus Linehan – International Artist Associate consultation on SOHP programming: $69,007. Interbrand – Strategic advisory services on organisational branding, $58,770. Three consultancies of $50,000 or less cost a total of $39,088 in the following areas: Information Technology process and feasibility review (1); digital content strategy review (1); and corporate leadership development (1).

Credit Card Use No irregularities in the use of corporate credit cards were recorded during the year. I certify that, to the best of my knowledge and belief, credit card use for the Opera House has been in accordance with Premier’s Memoranda and Treasurer’s Directions. Louise Herron AM Chief Executive Officer

Customer Experience The Sydney Opera House Enterprise Strategy 2013 states that everything we do and say should be viewed through the lens of our customers and stakeholders. That includes Resident Companies, government, private and corporate supporters, commercial partners, staff, patrons and the broader public. Strong, mutually beneficial relationships are crucial if the Opera House is to continue to evolve.

CUSTOMER SERVICE TEAMS The Host Team comprises vital front-line customer-service staff. They welcome and provide information to internal and external stakeholders as they enter the building via Stage Door. The Host Team manages Stage Door access between the hours of 6.30am and 11.30pm and administers customer feedback by recording, logging and assigning correspondence to relevant managers for response. Theatre Management and Front of House teams provide courteous, informed and personalised service to patrons attending performances. They are Opera House ambassadors who ensure a smooth and welcoming experience at our venues. Ticketing Services across Box Office, Contact Centre, email and web-support operations liaise with customers seeking information and purchases for our performances, tours, products and services. The Tourism team delivers guided tours to visitors and maintains close relationships with tourism and hospitality operators booking on behalf of tour groups, independent travellers and guests. The Opera House continued to invest in training and development in FY15, including programs covering evacuation and warden duties; customer service; conflict resolution; Front of House refresher courses; and Code of Conduct awareness. New recruits are inducted with customised training.

144 CUSTOMER SERVICE FEEDBACK In line with our Customer Feedback Policy and Customer First Commitment, the Opera House aims to achieve excellence in customer service through effective management of customer feedback. The Opera House welcomes and values complaints, compliments and suggestions as positive tools for change and improvement. All customer feedback is recorded and managed in a single repository, the Tessitura customer relationship management system.

OVERALL UNSOLICITED FEEDBACK 2008-15 798 complaints were registered this year, an increase of 7.69% on FY14 (741 complaints). 289 compliments were recorded, an increase of 48.2% compared with FY14 (195 compliments).

Type of Feedback 2014/15 13/14 12/13 11/12 10/11 09/10 08/09 07/08

Negative 798 741 715* 522 744 631 661 266

Positive 289 195 189 144 166 132 83 54

*6 additional items of feedback relating to this period in the Category of Event/Performance were received post submission.

UNSOLICITED FEEDBACK BY CATEGORY FOR FY15 The table below lists feedback by category. The Event/Performance category reflects feedback to a range of performances during the year.

Category Positive Negative

Audience Behaviour 0 30 Booking Fees 0 9 Front of House 47 17 Marketing 1 54 Wilson Car Park 0 17 Event/Performance 21 89 Policies and Procedures 6 42 Pricing 0 17 Seating 0 47 Venues & Precinct 17 74 Retail and Food 27 68 Ticketing Services 123 52 Tourism 38 31 Website 0 232 Other 9 19

Total 289 798

145 THE OPERA HOUSE COURTESY SHUTTLE BUS Reporting Government The complimentary bus that takes customers between Circular Quay and the Opera House is an essential service for elderly and less mobile patrons. This year it carried 19,645 passengers with no recorded incidents. Courtesy Shuttle Bus Passengers 2006 to 2015

Year Number of Passengers

2014/2015 19,645

2013/1014 18,639

2012/13 18,146

2011/12 18,800

2010/11 16,300

2009/10 18,000

2008/09 17,000

2007/08 15,000

2006/07 13,000

CUSTOMER RESEARCH The Opera House undertook no customer research in FY15.

PRESENTER SATISFACTION MEASUREMENT SURVEYS Annual performance reviews continued with Resident Companies, with participation by Bangarra, Bell Shakespeare, Opera Australia, Sydney Symphony Orchestra and The Australian Ballet. The Sydney Theatre Company review was delayed due to unavailability of key staff. The survey sought feedback on: event delivery process; technical services; front of house operations; building facilities; safety; catering; marketing services; and other services. Presenters ranked their satisfaction level from 1 (total dissatisfaction) to 7 (total satisfaction, no room for improvement). The Opera House team reconvenes regularly after meetings to monitor progress and ensure service improvement. The process is led by the Opera House’s Resident Company account manager. Participating companies engaged strongly with the process and gave comprehensive feedback. Scores from participating companies remained consistent with previous years with little or no movement on average scores. All areas of the business consistently achieve excellent results. A score under 5 is uncommon, indicating a high level of satisfaction from our Resident Companies. Business areas that have historically scored well (6 out of 7 or higher from each company) did so again in FY15. These included: account management; production management; nursing staff; invoicing; and Box Office operations. Customer service areas that continued to achieve high results included: Box Office staff; Host Team; Emergency Planning and Response Group staff; and Front of House staff. Resident Companies participated in integration and co-operation with theatre technician teams, Box Office operations and Marketing. Building Development and Maintenance scores remained consistent with the high level of previous years.

146 Disability Action Plan The Opera House Access Strategic Plan 2013-15 was endorsed by the Trust in June 2012. It incorporates planning outcomes contained in the Guidelines for Disability Action Planning by NSW Government Agencies. Year 3, the final year of Access Strategic Plan 2013-15, has delivered on key initiatives in its five focus areas, creating benefits for patrons, staff and performers with disabilities and enhancing the Opera House’s leadership and reputation in arts access. Highlights include: @@ The Opera House’s Access Program 2015 was launched by the NSW Minister for Ageing and Disability in February 2015 and includes a series of accessible performances and experiences in the Kids at the House, Creative Learning and International programs. Resident Companies Bell Shakespeare, Opera Australia and Sydney Theatre Company were included in the program, joined for the first time by the Australian Chamber Orchestra and Artistic Associate Sydney Philharmonia Choirs. The Access Program was expanded to include sensory theatre designed for children with profound and complex disabilities and $5 tickets through The Balnaves Foundation Open House Program for people experiencing social or economic disadvantage. @@ The Opera House piloted a free excursion program for students with intellectual disabilities in partnership with the Art Gallery of NSW. Students viewed works at the Gallery by artists including William Dobell, Max Dupain, Peter Kingston and John Coburn that were inspired by the Opera House and Sydney Harbour. The Opera House tour that followed allowed students to discover how the building and harbour influenced the artworks. @@ Accessibility was again a key consideration at events and in customer service operations. Designated accessible viewing areas on the Forecourt and customer-transport accommodations were available for major events including New Year’s Eve celebrations and Vivid LIVE events, ensuring that visitors with disabilities were provided with a seamless and accessible experience. @@ For the second year the Opera House provided free audio description of the Vivid LIVE centrepiece Lighting the Sails on several occasions. Trained staff volunteers described projections on the sails to blind or vision-impaired visitors and their companions from seats on the Western Broadwalk. Other electronic and tactile elements were incorporated into the Opera House tour this year. They included models of the sails and Samsung tablets that displayed sails images, enhancing the experience for patrons with low vision and some light perception. @@ The Opera House, Opera Australia and Giant Steps School for students with Autism Spectrum Disorders piloted the first autism-friendly performance of a musical withThe King and I. The whole school attended. A Meet Your Seat excursion took students to the Opera House’s Joan Sutherland Theatre to prepare for the event and The King and I cast members and crew visited the school in the lead-up to the performance. @@ During its Opera House season of performances New York’s internationally acclaimed Mark Morris Dance Group demonstrated its innovative global program Dance for PD (Parkinson’s Disease). A free community class was offered to people with Parkinson’s and their carers in the Utzon Room and a two-day introductory teacher-training workshop was held to help build a network of qualified teachers to lead Dance for PD classes in Sydney. @@ Lifestart and the Royal Institute of Deaf and Blind Children (RIDBC) worked with the Opera House to offer Accessible Babies Proms. The series is designed to ensure children with disability, their families and siblings are able to enjoy Babies Proms performances in a supportive, welcoming and relaxed environment. The performances are accompanied by free activities and music therapy sessions in the foyer, facilitated by Lifestart and RIDBC staff. Downloadable materials including a greeting song composed by the program’s music therapist prepare children for these new experiences. @@ The Opera House partners Accessible Arts NSW and the Museum of Contemporary Art (MCA) for an annual accredited Professional Development Day for special education teachers titled Dance, Theatre and Visual Art: Engaging Students with Disability. @@ The Opera House continued to support emerging artists with disabilities showcase their work at the Opera House with Can You See Me? Company, an initiative of Cerebral Palsy Alliance, performing its latest work Waiting Room to sold-out audiences in the Studio.

147 Reporting Government Electronic Service Delivery

TICKETING INSURANCE Customers can now insure tickets through the website, box office and call centre for a fee of 4% of the total ticket value. NUA Insurance is the underwriter and the Opera House receives commission on each transaction. Revenue of $15,147.02 has been raised on transactions in FY15.

RENEWAL OF UCSS CONSORTIUM CONTRACTS The Unified Customer Service System consortium, which uses a shared ticketing system hosted by the Opera House, has been renewed for a three-year term. The consortium consists of the Opera House, Opera Australia, Bell Shakespeare and The Seymour Centre. The Australian Chamber Orchestra left the consortium when the previous agreement ended.

WINDOWS 7 PROJECT All internal computers have been upgraded to Windows 7 and ageing hardware not compatible with the Windows 7 operating system was replaced. A new central system to manage the installation of services will streamline a future upgrade to Windows 10.

PERFORMANCE REVIEWS Performance reviews are completed online with a single clear process for managers and their teams. Organisational behaviours, key performance indicators and development plans can now be created online and are linked to the central repository for employee records.

INCIDENT AND HAZARD REPORTING Incidents and hazards are entered electronically and assigned to a manager for review and decision- making, enabling organisation-wide tracking. The reporting system covers staff, hirers, Resident Companies and customers.

BOX OFFICE SETTLEMENT SYSTEM A new box office settlement system has been implemented to streamline the settlement process. The reporting behind the system provides accurate pricing detail for a performance with relevant ticket numbers and sales information.

Environmental Sustainability

ENVIRONMENTAL SUSTAINABILITY PLAN FY15 ACHIEVEMENTS The Opera House’s commitment to environmental sustainability continues through the delivery of the objectives of our three-year Environmental Sustainability Plan 2014 -2016 (ESP). Key actions towards the ESP objectives in FY15 are outlined below. @@ The Opera House won the NSW Government Green Globe Award for Sustainability in a Heritage Building for the Concert Hall lighting upgrade to LEDs. It saved 75% on energy for those fittings while maintaining heritage values and improving theatre performance. @@ The Opera House was awarded a Green Building Council of Australia 4 Star Green Star – Performance rating. This independent rating assessed Sydney Opera House performance as industry best practice. @@ The Opera House has achieved a 16% reduction in energy use since FY01, saving an estimated $400,000 annually in energy costs.

148 USE RESOURCES EFFICIENTLY AND RESPONSIBLY Conserve water

Water (ML) 14/15 13/14 12/13 11/12 10/11 09/10 08/09 07/08 06/07

Opera House 65 87 78 64 70 59 54 58 66

VAPS 6 17 10 ------

Total 71 104 88 64 70 59 54 58 66

Water Use 33 50 46 38 43 - - - - per attendee (L/attendee)*

*Performance measure reflects revised ESP target. Water use (L total) is divided by total attendance for performances and tours.

Sydney Opera House Annual Water Consumption (kL)

120,000 KL VAPS KL SOH

16,926

9,788 80,000 86,826 78,357 KL 69,807 5,518 66,136 64,005 65,326 60,374 58,138 58,801 53,983 40,000

- 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

FINANCIAL YEAR

While overall water use was lower in FY15 than FY14, the Opera House has not yet reached its target of returning to the water use level of FY06 by June 2016. An independent water-use report completed in September 2014 found: @@ The Vehicle and Pedestrian Safety construction project has been a factor in water-use increases since 2012. @@ Use of amenities in the Lower Concourse (Opera Bar, Opera Kitchen) is a key factor in water trends. @@ Water use by the new HVAC (heating, ventilation and air-conditioning) seawater pumps is not a major contributor as previously thought. The water-use report recommended using a measure of water use per audience member and tour patron as the most appropriate benchmark for Opera House water efficiency, as use is linked to public amenities. The Environmental Sustainability Management Committee approved changing our Environmental Sustainability Plan target to: Reduce water use per total attendance (performances and tours) by 1% from FY06 level.

Rainwater harvesting reuse trial A detailed design was commissioned for a rainwater capture and reuse system. Technical and space restriction issues meant, however, the design was prohibitively expensive to implement. A full water strategy review will be undertaken in FY16 to look at alternative ways to reduce water use.

149 Reporting Government Water Consumption (per attendee / per transaction)

60.0 TARGET

30.0

0.0

2012/13 2013/14 2014/15

WATER PER ATTENDEE WATER PER TRANSACTION

Reduce electricity consumption On track to achieve the 20% electricity consumption reduction target by June 2016.

Electricity Use* 14/15 13/14 12/13 11/12 10/11 09/10 08/09 07/08 06/07 (MWh)

Opera House 16,859 17,872 18,282 17,376 17,825 18,688 17,707 18,730 19,056

Offsite Leases 210 241 243 335 281 273 277 209 164 (office & storage)

Total 17,068 18,113 18,525 17,710 18,106 18,961 17,984 18,939 19,220

* Reported electricity use includes all operations on Bennelong Point including Food & Beverage tenancies and major construction (VAPS). Offsite leases (office and storage) are also included.

Electricity Consumption (% reduction from 2000/01)

2012/13 2013/14 2014/15 10%

5%

0%

-5%

-10% -7.0% TARGET -15% -9.3%

-20% -15.9% -25%

-30%

ESP sets a target of 20% reduction in electricity use from FY01 level by 30 June 2016. In FY15 an energy saving of 16% was achieved, up from 9.3% in FY13. During FY15 the following energy saving initiatives were implemented: @@ LED replacements for 1900 back-of-house fluorescent lights. @@ Upgrade of the Building Monitoring and Control System (BMCS) that controls the building’s air- conditioning commenced. A number of HVAC upgrades will start in FY16, designed to assist delivery of the 20% energy target. However, it is noted that the VAPS underground loading dock will become functional in the second half of FY16, which may result in increased energy use.

150 Renewable energy trial To support renewable energy, the following steps were undertaken: @@ 6% Green Power was purchased during FY15 in line with NSW Government commitments. @@ Vivid LIVE used 100% Green Power (120MWh) from renewable energy; implemented measures to reduce our carbon footprint; and tracked and offset remaining emissions including flights, transport, catering, accommodation, waste and paper to be carbon neutral.

Efficient and responsible paper use ESP Targets Achieved: @@ FY15 copy paper savings of 8% achieved. This exceeded our target of 5% reduction in paper use on the FY09 level. @@ ESP target of more than 90% office paper with some recycled content was achieved. Projects were implemented to achieve cost-effective delivery of services through reduced paper use. A paper diet was held in November 2014. Paper-saving ideas were submitted that, once fully implemented, will save $12,800 in printing costs and 131,600 sheets of paper per year. Standout processes include: @@ Introducing a paperless stage door with a transition to electronic guest lists. @@ A changed Finance department process eliminated the printing of invoices, saving an annual 78,000 sheets of paper and reducing payment-processing time by two hours a week. Paper Consumption (A4 reams equivalent)

14000 TARGET 2874 2795 2654 3000

2000

1000

0

2012/13 2013/14 2014/15

Paper Consumption (% of Recycled Content) TARGET

91% 100% 89%

80% 64%

60%

40%

20%

0%

2012/13 2013/14 2014/15

Food, purchasing, green cleaning Sustainable Cleaning Guidelines have been developed and incorporated into the scope of works for the new Cleaning and Waste Tender, issued in August 2015. An investigation into embedding sustainable procurement into Opera House processes will be implemented in the next financial year.

151 Reporting Government REDUCE WASTE Increase waste diversion from landfill to 40% On track towards our 40% ESP recycling target, achieving 36% recycling by weight in FY15 Towards the ESP focus area of reducing waste and achieving a 40% diversion of waste from landfill, the following initiatives were undertaken: @@ An Operational Waste Management Plan was developed to document our processes in line with the Better Building Partnership waste guidelines. @@ An independent waste audit was conducted in June 2015. @@ Three waste process checks were conducted during Vivid LIVE 2015 to reduce our Vivid LIVE footprint. @@ A successful OzHarvest food donation trial was undertaken during Vivid LIVE. @@ The design of a new waste and recycling area in the new VAPS project loading dock progressed.

Continually improve waste monitoring The Opera House’s waste recycling figures for the past year have been revised based on the outcomes of an independent audit. The number of bins/pallets/units of each waste stream is reported by the cleaning contractor monthly. These numbers have previously been multiplied by the NSW Government WRAPP Guideline densities to derive the percentage by weight recycled. The independent waste audit provided site-specific data relating to the weight per bin/unit on site (density) which was different to the NSW Government standard. The new density was used to revise the calculations of total weight and recycling rate (by weight) for the past four years, with recycling rates significantly increased from those previously reported. While the ESP waste target of 40% was not achieved, we are much closer to reaching our ESP target using the more accurate conversion to weight. This change highlights the importance of direct measurement of weight of recycling to improve data integrity. The new waste contract to be tendered in FY16 will include KPIs for data integrity and on-site weighing where possible.

Waste Production (% Recycled by weight)

100%

75%

TARGET

38% 37% 50% 35%

25%

0%

2012/13 2013/14 2014/15

Year 2015/14 2014/13 2013/12 2012/11

Stream Tonne* % Tonne* %^ Tonne* %^ Tonne* %^

Recycling 452.1 36% 403.6 38% 397.4 35% 330.2 29%

General waste 770.5 64% 654.7 62% 725.9 65% 813.0 71%

Total 1222.6 100% 1058.3 100% 1123.3 100% 1143.3 100%

*Note this figure does not include disposal of construction waste, liquid waste, or large items donated to reverse garbage.

^Percentage by weight.

152 IMPROVE ENVIRONMENTAL RISK MANAGEMENT Improve environmental risk management The Opera House is committed to active risk management. Towards improving environmental risk management, the following initiatives have been implemented in FY15: @@ Annual Environmental Sustainability Management Review process was implemented. @@ Our Environmental Management System was documented in line with the ISO 14001 standard. @@ The first internal audit of our environmental risk management against the requirements of ISO14001. Sydney Opera House is working through the recommendations of this audit. @@ Incident Reporting and Response guidelines were developed.

EMBED, ENGAGE AND INSPIRE Develop an environmentally aware staff culture @@ Staff engagement activities were held each quarter including free bike maintenance on Ride to Work Day, two lunchtime talks for staff and partners, a paper diet and an "energy bunny" campaign, with Easter eggs given to those who switch off computers at night. @@ The establishment of a new Green Champions group, the Sustainable Environmental Action Leaders (SEALs), named after the seal that frequently rests on the Opera House steps. @@ Sustainability training as part of the induction program continues.

Collaborate with partners @@ The Opera House won the NSW Government Green Globe Award for Sustainability in a Heritage Building for the Concert Hall lighting project. @@ The Opera House was awarded a Green Building Council of Australia 4 Star Green Star – Performance rating, which means we have been assessed as industry best practice. @@ A "sustainability tour" in partnership with the Green Building Council of Australia was held on World Environment Day in June 2015.

Engage and inspire our audiences @@ The Ideas at the House program continues to inspire debate on key sustainability ideas through a range of talks, including five talks in the Festival of Dangerous Ideas and two in All About Women. The Creative Learning program included two children’s shows with environmental themes, The Tale of Samulnori and Snugglepot and Cuddlepie, and Jamie Oliver’s promotion of sustainable eating. @@ A video, Inspired by Nature, was produced to explain the sustainability legacy of Jørn Utzon’s Opera House design. It received more than 6000 views on the Opera House’s YouTube channel.

Carbon Footprint The Opera House produced 17,374 metric tonnes of carbon dioxide equivalent for FY15, representing a 5% decrease on the previous year. Emissions have been calculated for the full fuel cycle in accordance with Department of Climate Change and Energy Efficiency National Greenhouse Accounts (NGA) Factors August 2015; DEFRA UK Government conversion factors for Company Reporting 2015; and EPA Victoria Publication 1562 April 2014. The Opera House had the completeness of emissions sources, accuracy and robustness of data, key assumptions, emissions factors, calculations and methodologies verified by qualified third party auditors, Pangolin Associates.

153 Reporting Government

Opera House Greenhouse Gas Emissions 2009/10 to 2014/15

Source 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10

Scope 1 – Direct Emissions

Natural Gas - - 147 105 126 91

Refrigerants 468 390 401 394 398 398

Fuel Use by Fleet Vehicles 5 6 5 8 8 4

Scope 2 – Electricity

Electricity from buildings 16,898 17,932 19,637 18,773 19,193 20,288 (Opera House, tenancies and offsite leases)

Greenpower1 1,133 (-1,210) (-1,174) (-2,010) (-1,729) (-1,205)

Net Emissions from 15,765 16,722 18,463 16,764 17,463 19,083 Electricity

Scope 3 – Indirect Emissions

Flights2 178 89 223 217 Not Not counted counted

Office Paper 9 15 14 17 19 Not counted

Publications Paper 38 60

Waste 859 978 854 991 837 482

Taxis3 50 Not Not Not Not Not counted counted counted counted counted

Total 1 7,3 74 18,260 20,107 18,495 18,851 20,057

Percentage change from -5% -9% +9% -2% -6% N/A previous year

1 FY15 Green Power purchase was 10% for July 2014-June 2015 and an additional 120MWh was purchased for Earth Hour 2015.

2 Flights in FY15 included international flights only as domestic flights are booked individually by staff and are not easily collectable with current systems and processes.

3 In line with the ESP commitment to include one extra scope 3 emission every year, emissions from taxis was added this financial year.

Equal Employment Opportunity (EEO) The Opera House is committed to maintaining equality in the workforce by upholding a workplace culture that displays fair practice and behaviour, and ensuring that all people are valued, respected and have opportunities to develop their potential.

EEO INITIATIVES AND ACHIEVEMENTS FY15 @@ Promotion of greater Aboriginal and Torres Strait Islander (ATSI) employment through the active marketing of roles, including bulk employment roles, through Indigenous recruitment networks. @@ One of our first Indigenous staging trainees successfully completed the Career Pathways Program and is now employed as a full-time Fire & Safety Officer. @@ Hosted an Indigenous Careers Day for 28 ATSI students to provide them with practical support and guidance in resume writing and interview skills in preparation for their entry into the workforce, while showcasing employment opportunities both within the Opera House and with our presenting partners. @@ Four Indigenous work experience programs delivered. @@ Seven Indigenous school-based students completed traineeships with Ticketing and Front of House (FOH). @@ Four former school-based trainees casually employed within FOH team. @@ Continued discussions with the iLead mentoring program to promote leadership skills development and the participation and development of women in management. @@ Graduated our female Bangarra Indigenous trainee and strengthened the relationship with Bangarra 154 Dance Theatre and the Sydney Opera House’s Registered Training Organisation (RTO). EEO INITIATIVES FY16 @@ We will launch the first Indigenous intern program. @@ Development of an Indigenous attraction, recruitment and retention strategy with other cultural initiatives. @@ SOH will pilot cultural competence workshops with leaders across the organisation to develop cultural competence skills and knowledge and launch a supporting e-Learning module. @@ The Opera House will collaborate with the Australia-Korea Foundation to host two Korean interns who will contribute to the Global Conversations Korean digital education project. @@ The Opera House will collaborate with the Cultural Office of the Chinese Consulate in Sydney to host four interns in our Sound, Marketing and Programming departments. @@ The Opera House will continue to host an annual career planning day for ATSI students to provide them with practical support and guidance in resume writing and interview skills in preparation for their entry into the workforce, while showcasing employment opportunities within the Opera House and with our presenting partners. @@ We will expand the network with Save the Children, the NSW Department of Education Aboriginal Unit and Aboriginal Learning Circle and maintain the relationship with the Guwara school (within St Andrew’s Cathedral School) to support a structured work experience program for school-based ATSI trainees. @@ Continued work experience and traineeship programs for ATSI students. @@ Continued relationship with the Paralympic Workforce Diversity Program. @@ Continuation of the Workplace Giving staff engagement program to facilitate charitable donations to charity partners. @@ The Opera House will employ another eight Indigenous school-based trainees in ticketing and FOH.

TABLE A. TRENDS IN THE REPRESENTATION OF EEO GROUPS

EEO Group Benchmark 2015 2014 2013 2012 2011 or Target

Women 50% 45.2% 46.6% 44.5% 46% 47.1%

Aboriginal people and 2.6% 2.0% 1.6% 1.9% 1.6% 0.3% Torres Strait Islanders1

People whose first 19.0% 16.1% 14.3% 15.5% 14.6% 13.7% language was not English

People with a disability N/A 2.3% 2.5% 2.9% 3% 3.4%

People with a disability 1.5% 0.2% 0% 0.2% 0.2% 0% requiring work-related adjustment

1 Includes casual staff for 2011.

TABLE B. TRENDS IN THE DISTRIBUTION OF EEO GROUPS

EEO Group Benchmark 2015 2014 2013 2012 2011 or Target

Women 100 105 107 105 101 98

Aboriginal people and 100 N/A N/A N/A N/A N/A Torres Strait Islanders1

People whose first 100 76 80 87 86 90 language was not English

People with a disability 100 N/A N/A N/A N/A N/A

People with a disability 100 N/A N/A N/A N/A N/A requiring work-related adjustment

1 Includes casual staff for 2011.

Note: Staff numbers at 30 June 2015. Information provided by the Workforce Profile Unit, Public Service Commission. The Distribution Index is automatically calculated by the software provided by Public Service Commission. The Distribution Index is not calculated where EEO group or non- EEO group numbers are less than 20 (denoted by n/a). 155 Reporting Government Fire Safety Responsibility for fire safety systems compliance rests with the Director of Building. On 17 June 2015, the building’s Annual Fire Safety Statement was issued in accordance with the Environmental Planning and Assessment Regulation 2000 – Division 5, Clause 175 and 178. Stage 4, the final stage, of the fire hydrant and hose reel upgrade program continues and is being integrated with the final stages of construction on the Vehicle Access and Pedestrian Safety project. This work is targeted for completion in FY16 and will complete the current program of fire upgrade works.

Government Information and Public Access (GIPA) Act 2009

REVIEW OF PROACTIVE RELEASE PROGRAM – CLAUSE 7(A) OF THE GOVERNMENT INFORMATION (PUBLIC ACCESS) AMENDMENT REGULATION 2010 (GIPA REGULATION) UNDER THE GIPA ACT In accordance with section 7 of the Government Information and Public Access Act 2009 (the GIPA Act), the Opera House conducted a review of the information it makes publicly available and updated its agency information guide. The access application form was also updated, together with details on the Opera House’s disclosure log and government contracts register. These improvements provide clearer guidance on how to seek information, informally and formally, and streamline the process for seeking information. The Opera House uploaded its workplace bullying and harassment policy to the Opera House website and continued to improve public accessibility to information and activities, particularly online.

NUMBER OF ACCESS APPLICATIONS RECEIVED – CLAUSE 7(B) OF THE GIPA REGULATION During the reporting period, the Opera House received two formal access applications under the GIPA Act.

NUMBER OF REFUSED APPLICATIONS FOR SCHEDULE 1 INFORMATION – CLAUSE 7(C) OF THE GIPA REGULATION During the reporting period, the Opera House did not receive any applications for information referred to in Schedule 1 of the GIPA Act.

STATISTICAL INFORMATION ABOUT ACCESS APPLICATIONS – CLAUSE 7(D) AND SCHEDULE 2 OF THE GIPA REGULATION

Table A: Number of applications by type of applicant and outcome*

Access Access Access Information Information Refuse to Refuse to Application granted granted refused not held already deal with confirm/ withdrawn in full in part in full available application deny whether information is held

Media 0 1 0 1 0 0 0 0

Members of 0 0 0 0 0 0 0 0 Parliament

Private sector 0 0 0 0 0 0 0 0 business

Not for profit 0 0 0 0 0 0 0 0 organisation or community group

Members of 0 1 0 0 0 0 0 0 the public (application by legal rep)

*More than one decision can be made in respect of a particular access application. In such cases, a recording has been made in relation to each decision.

156 Table B: Number of applications by type of application and outcome*

Access Access Access Information Information Refuse to Refuse to Application granted granted refused not held already deal with confirm/ withdrawn in full in part in full available application deny whether information is held

Personal 0 0 0 0 0 0 0 0 information applications

Access 0 2 0 1 0 0 0 0 applications (other than personal information)

Access 0 0 0 0 0 0 0 0 applications that are partly personal information applications and partly other

*More than one decision can be made in respect of a particular access application. In such cases, a recording has been made in relation to each decision.

Table C: Invalid applications

Reason for Invalidity No. of applications

Application does not comply with formal requirements (section 41 of the Act) 0

Application is for excluded information of the agency (section 43 of the Act) 0

Application contravenes restraint order (section 110 of the Act) 0

Total number of invalid applications received 0

Invalid applications that subsequently became valid applications 0

Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 to the Government Information (Public Access) Act 2009

No. of times consideration used

Overriding secrecy laws 0

Cabinet information 0

Executive Council information 0

Contempt 0

Legal professional privilege 0

Excluded information 0

Documents affecting law enforcement and public safety 0

Transport safety 0

Adoption 0

Care and protection of children 0

Ministerial code of conduct 0

Aboriginal and environmental heritage 0

157 Reporting Government Table E: Other public interest considerations against disclosure: matters listed in table 14 to the Government Information (Public Access) Act 2009*

No. of occasions when application not successful

Responsible and effective government 1

Law enforcement and security 1

Individual rights, judicial processes and natural justice 2

Business interests of agencies and other persons 1

Environment, culture, economy and general matters 0

Secrecy provisions 0

Exempt documents under interstate Freedom of Information legislation 0

*More than one public interest consideration may apply in relation to a particular access application. In such cases, each consideration has been recorded (but only once per application).

Table F: Timeliness

No. of applications

Decided within the statutory timeframe (20 days plus any extensions) 2

Decided after 35 days (by agreement with applicant) 0

Not decided within timeframe (deemed refusal) 0

Total 2

Environment, culture, economy and general matters 0

Secrecy provisions 0

Table G: Number of applications reviewed under Part 5 of the Government Information (Public Access) Act 2009 (by type of review and outcome)

Decision varied Decision upheld Total

Internal review 0 0 0

Review by Information Commissioner 0 1 1*

Internal Review following recommendation under 0 0 0 section 93 of the Act

Review by NSW Civil & Administrative Tribunal 0 0 0

Total 0 1 1

* The Information Commissioner does not have the authority to vary decisions but can make recommendations to the original decision-maker. In this case, the Information Commissioner recommended that the original decision be upheld. This application was received by the Opera House in FY14. However, the Information Commissioner made her decision in relation to the review in FY15.

Table H: Applications for review under Part 5 of the Government Information (Public Access) Act 2009 (by type of applicant)

No. of applications for review

Applications by access applicants 1*

Applications by persons to whom information the subject of access application 0 relates (section 54 of the Government Information (Public Access) Act 2009)

* This application was received by the Opera House in FY14. However, the Information Commissioner made her decision in relation to the review in FY15.

158 Heritage Management We have continued to meet our obligations as a State, National and World Heritage-listed site through the ongoing development of our risk management and heritage awareness initiatives and the Conservation Management Plan. Our Heritage Interpretation Strategy has continued to develop with the advice of our Conservation Council and Eminent Architects Panel. Heritage Interpretation has been included in the design of the new Welcome Centre, which is scheduled to open in FY16. A two-year project to create a Concrete Conservation Strategy for the Opera House commenced in July 2014. Co-funded through a grant from the Getty Foundation as part of its Keeping it Modern program, the project aims to study the current condition of the concrete in critical areas of the building and develop a long-term strategy for the care and conservation of this core building element. We have partnered with the University of Sydney to undertake this important project and the research is progressing on target. The Conservation Management Plan 4th edition was prepared for public exhibition. The Conservation Council met three times during FY15. The Conservation Council’s Charter was revised as part of a Trust governance review, effective 23 March 2015. The Conservation Council provided advice on a range of projects including: @@ Oversight of general conservation management @@ Concrete Conservation Strategy @@ Food and Beverage tenders for Opera Bar and Bennelong Restaurant @@ Visitor Centre @@ Conservation Management Plan 4th edition @@ Sydney Opera House Renewal Framework @@ Stage 1 Renewal Projects @@ Theatre Machinery Project @@ Maintenance projects @@ Heritage advice and oversight of the Vehicle Access and Pedestrian Safety project and Podium Waterproofing project @@ Heritage Interpretation Strategy and Heritage Risk Management Plan @@ Multidisciplinary Australian Danish Exchange (MADE by the Opera House) program

Indigenous

RECONCILIATION ACTION PLAN The Opera House launched its third Reconciliation Action Plan (RAP) in July 2013. The RAP outlines the Opera House’s commitment to closing the gap, embedding Indigenous programs into core business activities and providing opportunities for Aboriginal and Torres Strait Islander people. The three-year RAP (2014-2016) focuses on programming and education initiatives, employment and training, and broader cultural awareness.

HIGHLIGHTS FY15 Homeground November 2014 The Opera House attracted 10,000 attendees to Homeground, the annual Opera House outdoor celebration of First Nations music, dance and culture. The festival featured some of Australia’s finest musicians including Dan Sultan, Casey Donovan, Ursula Yovich, and Richard Frankland and The Charcoal Club. Dance Rites Dance Rites, a new project to revitalise Aboriginal cultural heritage, commenced in 2015. The project has generated strong interest from communities across NSW based on briefings by the Opera House’s Head of Indigenous Programming, Rhoda Roberts. A pilot program began in May 2015 and will culminate in a dance competition at the Opera House during Homeground 2015. Digital Education 2724 students from 59 schools participated in Guwanyi Walama: To Tell and Return, an interactive digital tour of the Opera House that explores the Indigenous history of Bennelong Point. Guwanyi Walama and a live stream of the show Bindjareb Pinjarra and interactive post-show discussions were delivered to six schools with large Indigenous populations in the Pilbara region of Western Australia.

159 Reporting Government Employment and Training Twenty-seven students participated in the fifth year of the Opera House’s Indigenous Work Experience program. The program focuses on skills development, building personal confidence and engagement with Indigenous artists and Opera House staff. The Opera House model is considered best practice by the NSW Department of Education. Four traineeships were undertaken in ticketing and front-of-house teams as part of the Indigenous Traineeship program for school-aged students. All four trainees were offered and accepted work placements at the Opera House on completion of their traineeships. An Indigenous Careers Day was piloted in October 2014. Twenty-eight young Indigenous people attended the day, many of whom had taken part in the Opera House’s Indigenous Work Experience program. The participants learned about career paths at the Opera House and vocational skills such as resume writing and interview preparation. Cultural Awareness The Opera House has developed a staff Cultural Awareness Learning Module for launch in late 2015. It delivers online Aboriginal and Torres Strait Islander cultural awareness training and face-to-face training for each business unit. Training will be delivered to all staff members and incorporated into new staff induction processes. A Staff Immersion Program has been developed and is scheduled to commence in early 2016. The program involves Opera House staff undertaking a 120-hour engagement with an Indigenous organisation over 12 months. The program aims to provide a meaningful and mutually beneficial exchange for Opera House staff and partner organisations. Sydney Opera House celebrated Reconciliation Week on 3 June 2015 with cultural awareness activities for staff, Resident Companies and external stakeholders. The event included a talk by Head of Indigenous Programming Rhoda Roberts, followed by a community BBQ and weaving workshop on the Western Broadwalk.

Insurance Insurance coverage of the Opera House is predominantly provided by the NSW Treasury Managed Fund, a self-insurance scheme administered by GIO (property, public liability, motor vehicle and miscellaneous) and by Allianz (workers compensation). The property policy protects Sydney Opera House assets and the properties for which it holds long-term leases. During the year the Opera House had five miscellaneous claims (totalling $42,042), 11 property claims ($21,465), two motor vehicle claims ($18,813) and eight liability claims ($15,115). Under the workers compensation policy 24 new claims were lodged during FY15. The table below shows the total cost of premiums excluding GST, arriving at the cost per employee over the past five years.

2014/15 2013/14 2012/13 2011/12 2010/11 $ $ $ $ $

Motor Vehicle 5,460 6,480 3,320 3,290 2,880 Property 659,560 732,100 700,100 646,150 579,600 Public Liability 311,120 334,370 349,560 359,660 372,780 Workers Compensation 664,455 691,909 820,530 1,124,200 924,280 Miscellaneous 31,050 23,310 17,270 12,800 9,600

Total Cost 1,671,645 1,788,169 1,890,780 2,146,100 1,889,140

Total Employees 850 857 759 847 781

Cost per Employee 1,967 2,087 2,468 2,534 2,419

The Opera House has taken out Statutory Liability insurance with Lloyds of London placed through Dual Australia Pty Ltd. It covers fines and related costs imposed as a result of an innocent breach of the many Acts which control the Opera House’s operations. This is insurance cover not provided by the Treasury Managed Fund and no claim has been made under this policy. Further insurance has been taken out by the Opera House for performers engaged through Sydney Opera House Presents who do not have their own public liability insurance. Cover through the Treasury Managed Fund is limited to Trust Members, Directors, Officers and Opera House employees. No claim has been made against this insurance that has been provided by SLE Worldwide Australia Pty Limited and underwritten by Lloyds of London.

160 Investment Performance Measure Investments are placed with NSW Treasury Corporation or banks at interest rates equivalent to, or greater than, the relevant benchmark Hour-Glass investment.

Land Title Holdings

SUMMARY OF LAND HOLDINGS Ownership of Sydney Opera House and its land is vested in the Minister administering the Sydney Opera House Trust Act 1961 (the Minister for the Arts) on behalf of the NSW Government. The Sydney Opera House Trust, which is constituted as a body corporate under the Sydney Opera House Act 1961, is responsible for the operation and maintenance of the Opera House and its land. The site area is 3.82527 hectares and is located at the northern end of Circular Quay East, Bennelong Point, and as at 30 June 2015 was valued at $111 million.

Legal No amendment was made to the Sydney Opera House Trust Act 1961 or the Sydney Opera House Trust By-Law 2010.

Multicultural Policies and Services Plan In support of the NSW Multicultural Policies and Services Plan, opportunities to engage with the Opera House were created for artists, audiences and visitors from a range of cultural backgrounds. Performances with a strong multicultural theme were presented across a variety of art forms, including music, dance, theatre, talks and community and cultural engagement initiatives. The presentations included large and small-scale performances across the venues, from Sydney Opera House Presents, Resident and supported companies, and other presenters. Highlights of Sydney Opera House Presents presentations identified under the Multicultural Policies and Services Plan: @@ Homeground: Australia, Canada, Scotland, Fiji, New Zealand (April 2014 and November 2014) The Opera House’s annual free outdoor festival celebrated music and dance from First Nations across the globe. 2014 highlights included Dan Sultan (Australia), Digging Roots (Canada) and Breabach (Scotland). @@ Hofesh Shechter’s Sun: Israel/United Kingdom (August 2014) UK-based Hofesh Shechter is one of the world’s most exciting contemporary choreographers. His recent work Sun featured an eclectic soundtrack with original music by Shechter. @@ Nils Frahm: Germany (October 2014) The German neo-classical producer crosses the boundaries of classical composition and electronic music. Nils Frahm presented two concerts in the Studio following his Vivid LIVE concert in 2014. @@ Hans Christian, You Must Be an Angel: Denmark (November 2014) Award-winning Danish company Teatret Gruppe 38 celebrated the work of countryman Hans Christian Andersen with a magical dinner party at which the guests were Andersen’s fairy-tale characters. @@ I, Bunyip: Australia (November 2014) I, Bunyip combined life-like puppets, visual effects and multimedia to introduce young audiences to characters from ancient Indigenous stories. @@ London Symphony Orchestra: United Kingdom (November 2014) Under the baton of Chief Conductor Valery Gergiev, the LSO performed two programs in three sold- out concerts featuring works by Prokofiev, Shostakovich and Rachmaninov. @@ Ásgeir: Iceland (January 2015) Icelandic singer-songwriter Ásgeir brought his falsetto folk harmonies and delicate electronics to the Opera House for two sold-out Concert Hall shows. @@ Baila Brazil: Brazil (January 2015) Bale De Rua returned with its new show Baila Brazil, combining live music, acrobatics and dynamic rhythm and percussion. @@ Aboriginal Perspectives of Bennelong Point: Australia (March, May, August 2015) This roaming digital tour of the Opera House brought to life the history and architecture of the building and explored how it has become synonymous with Australia’s cultural identity. @@ Baulkham Hills African Ladies Troupe: Australia/Africa (March 2015) Refugee African women now living in Australia turned their stories of survival into a joyous and uplifting theatrical experience. 161 Reporting Government @@ Digital Pilbara Project: Australia (March 2015) As part of the Opera House’s Reconciliation Action Plan, the Digital Creative Learning team delivered a series of live and interactive experiences to Indigenous students in the Pilbara region of Western Australia with the aim of increasing students’ understanding of Indigenous history, arts and culture and providing a connection with the Opera House. @@ Les Arts Florissants: France (March 2015) One of the world’s finest Baroque music ensembles performed at the Opera House with singers from founder William Christie’s vocal academy, Les Jardin des Voix. @@ Nathi: North Arnhem Land, Australia (March 2015) Yolngu women performed one of their key sacred rituals Nathi, or Crying for Country, in the Royal Botanic Gardens. This unique ceremony of song celebrated the dawning of the new day and the renewal of life. @@ Angelique Kidjo: Benin, Africa (April 2015) Famed singer-songwriter and activist Angelique Kidjo performed with US blues and gospel singer Mavis Staples in an exclusive Opera House performance. @@ Monkey…Journey to the West: Australia (April 2015) Monkey…Journey to the West is a contemporary stage adaptation of the Chinese classic allegorical novel by Wu Ch’eng-en combining comedy, music, song and martial arts. @@ Gipsy Kings: France (April 2015) The Gipsy Kings made their Opera House debut in their 25th anniversary year, bringing music that combines flamenco, rumba, salsa and pop. @@ Rodrigo y Gabriela: Mexico (April 2015) The Mexican acoustic guitar duo, whose music is influenced by rock, heavy metal and nuevo flamenco, performed their new album 9 Dead Alive. @@ The Walking Neighbourhood: Canada/Australia (April 2015) The first phase of development in this pilot program involved participants drawn from the Opera House’s Indigenous Work Experience program. In The Walking Neighbourhood young people lead a tour while incorporating stories from their own lives. @@ Bindjareb Pinjarra: Australia (June 2015) Western Australia’s 1834 Pinjarra massacre and its contemporary reverberations are examined through a fusion of history, satire and tough physical theatre. @@ Global Conversations Digital Project: Australia/Korea (June 2015) The pilot of Global Conversations delivered interactive digital tours, workshops and live-streamed performances to Korean and Australian students. Workshops were based around The Tale of Samulnori, an Australian/Korean theatre, music and dance production from Australian physical theatre company Legs on the Wall and Korean companies Daorum and AsiaNow. @@ Dubowgale Beats: Australia (August 2015) Dubowgale Beats combined a concert in support of the Jimmy Little Foundation with music and conversation from celebrated Indigenous performer Archie Roach. @@ Sylvie Guillem: UK/France (August 2015) Sylvie Guillem, the most celebrated ballerina of her generation, performed Life in Progress at the Opera House as part of her international farewell tour following a career spanning nearly 40 years. To meet the needs of visitors and customers from diverse cultural backgrounds, the Opera House provides services and information in Japanese, Korean, Mandarin, French and German. In addition, website pages, information brochures and other printed collateral are produced in all tour languages. Next year the Opera House will continue to: @@ provide tours in English, Japanese, Korean, Mandarin, French and German; @@ communicate via a range of translated material and interpreters; and @@ present opportunities to a culturally diverse range of artists, audiences and the community through events, services and consultation.

162 Overseas Travel Opera House staff undertake interstate and overseas travel for business reasons, including sourcing performing arts product, touring programs and representing the Opera House at key industry forums. The following overseas travel undertaken during the reporting year was approved by the Secretary, NSW Trade and Investment.

Name Of Position Country Purpose of Visit Travel From Travel To Officer Visited

Andrew Orris Data, Analytics US – Dallas Conference attendance to provide 12/08/2014 24/08/2014 & Platforms insight into current and future Manager best-practice uses of Tessitura; assist in maximising financial returns to the Opera House by cultivating a more data-driven, results-focused culture.

Monika Sales Account Japan To develop professional 24/08/2014 31/08/2014 Townsend Manager, Tours relationships with product planners and decision makers; showcase Opera House product offerings to key trade partners, travel media and frontline sales and operational staff in Japan.

David Director, UK – London, Guest keynote speaker at The 11/10/2014 19/10/2014 Claringbold Theatre & Glasgow LEVEL Summit 2014 on The Events Digital Venue, redefining the customer, artist and audience experience; meetings critical to Opera House planning and strategy development with London counterparts.

Christopher Digital US – Los Insights tour of venues and 06/10/2014 14/10/2014 Daniels Marketing Angeles, San stadiums leading the way Manager Jose, South with connected technology to Dakota, understand how they provide Kansas, New enhanced customer experiences York as well as commercial strategies driving strong return on investment.

Andrew Orris Data, Analytics Brazil – Rio de Attend TED Global 2014 06/10/2014 10/10/2014 & Platforms Janeiro conference on innovation, Manager leadership, connectivity and perspective.

Bridgette Van Head of South Korea Attend 2014 International 12/10/2014 18/10/2014 Leuven Children, -Seoul Symposium for Arts and Culture Families and Education (ISACE); present Education keynote speech on expanding arts education through digital technology.

Louise Herron Chief Executive Israel Meet leading Israeli performing 23/10/2014 02/11/2014 Officer arts administrators, private and corporate supporters and cultural institutions; undertake site visits of venues that have undergone significant renewal, including Tel Aviv Performing Arts Centre and Jerusalem Khan Theatre; gain critical insights into challenges faced by institutions that have developed and implemented renewal programs and major capital upgrades or developments.

Kya Blondin Head of Israel Meet leading Israeli performing 23/10/2014 01/11/2014 Government arts administrators, private and Relations corporate supporters and cultural institutions; undertake site visits of venues that have undergone significant renewal, including Tel Aviv Performing Arts Centre and Jerusalem Khan Theatre.

163 Reporting Government Danielle Producer, Talks US – New York Attend 2014 New Yorker Festival 08/10/2014 15/10/2014 Harvey & Ideas to ascertain suitability for Sydney audiences; hold meetings with key staff to explore artistic, financial and operational aspects of the festival; hear and meet provocative speakers for potential inclusion in Ideas at the House program.

Jonathan Director, China – Attend China-Shanghai 17/10/2014 24/10/2014 Bielski Programming Shanghai International Arts Festival and Arts Fair for performances across all genres to consider for future Sydney Opera House Presents programming; undertake meetings with key Chinese and international arts managers.

Sarah Duthie Head of Sales US – various Develop business relationships 02/11/2014 16/11/2014 with product planners and decision makers; raise awareness of Opera House products and attract visitors to Sydney Opera House. Australia Expo includes established export- ready product workshops, trade shows and seminars, connecting 35 North American travel buyers with 35 established Australian tourism products for face-to-face meetings.

Ben Marshall Head of UK – London Attend Red Bull Music Academy, 11/11/2014 21/11/2014 Contemporary a world-travelling series of music Music workshops and festivals that provide a platform for those who make a difference in today’s musical landscape.

Bridgette Van Head of US – Attend performances of new 20/01/2015 30/01/2015 Leuven Children, Philadelphia, artistic work created specifically Families and Boston, for young audiences in order Education New York & to ascertain quality and artistic Washington excellence for potential inclusion in the Opera House’s 2015 young audience programs.

Louise Herron Chief Executive UAE – Abu Attend ISPA New York Congress 11/01/2015 18/01/2015 Officer Dhabi; US – Dynamic Leadership: Creating the New York Future to discuss industry trends and opportunities and strengthen professional relationships with industry leaders; meet senior executives of Etihad Airways, to discuss the Opera House's partnership agreement with Etihad Airways.

Jeremy Head of Sound Stuttgart – Attend education workshop with 21/02/2015 01/03/2015 Christian and AV Germany d&b Audiotechnik in Germany on new acoustic technology in development that could be appropriate to future Opera House projects such as the Joan Sutherland Theatre Acoustic Improvement Project.

Jade McKellar General China – Attend annual China Mission 19/03/2015 30/03/2015 Manager Shanghai, 2015, a joint Destination NSW and Tourism Wuhun, Tourism and Events Queensland Guangzhou sales mission in Wuhan and and Hong Kong Guangzhou.

Sarah Duthie Head of US, Canada – Attend Destination NSW’s 15/03/2015 29/03/2015 Sales, Tours & multiple cities Australia Marketplace and There’s Experiences Nothing Like Australia Retail Roadshow.

Georgia Hendy Senior Producer Israel Attend International Exposure of 19/03/2015 30/03/2015 Children, Dance and Theatre for Children Families & and Youth In Israel, held in Education Jerusalem and Tel Aviv.

164 David Director Theatre Germany Keynote speaker at d&b 11/04/2015 18/04/2015 Claringbold & Events Audiotechnik’s 2015 Global Partner Meeting; attend Prolight and Sound Trade Show

Bridget Van Head of Denmark Speak at the 2015 LEGO Idea 11/04/2015 16/04/2015 Leuven Children, conference in Denmark on the Families and partnership between Sydney Education Opera House and LEGO Education.

Ben Marshall Head of UK; US Attend offices of Universal 17/04/2015 30/04/2015 Contemporary Everything, the company lighting Music the Opera House sails for Vivid LIVE 2015

Georgia Hendy Senior Producer, UK Attend Imaginate Festival, 09/05/2015 23/05/2015 Children, Edinburgh. Families & Creative Learning

Ann Mossop Head of Talks US Attend TEDWomen 2015 and 26/05/2015 04/06/2015 and Ideas World Science Festival to see a range of speakers, writers and panellists for potential inclusion in future programs.

Tara Smith Producer Digital Busan, South Build knowledge and relationships; 31/05/2015 06/06/2015 Education Korea visit participating schools, meet teachers and students; attend classroom sessions; collect first- hand feedback and evaluative data.

Louise Herron Chief Executive UAE – Abu Attend International Society for 24/05/2015 31/05/2015 Officer Dhabi; the Performing Arts board meeting Denmark – (LH appointed to the board in Copenhagen 2014); speak at ISPA Congress on Visions for the Future: Building Bridges; discuss industry trends and opportunities; strengthen professional relationships with industry leaders.

David Harris Digital South Korea Meet Google to discuss forming 26/05/2015 30/05/2015 Connections an ongoing relationship for future Manager connections in this region.

Georgia Hendy Senior Producer, UK Attend Edinburgh Fringe Festival 11/08/2014 22/08/2014 Children, to identify suitable commercial Families and product for the Opera House; Creative facilitate development of creative Learning and business partnerships with international arts organisations.

Jennie Tour and Project Scotland Attend and manage Tri-Nations 12/07/2014 26/07/2014 Bradbury Manager Concert

Rhoda Roberts Head of Scotland Attend and manage Tri-Nations 12/07/2014 26/07/2014 Indigenous Concert Programming

Georgia Hendy Senior Producer; Japan – Identify suitable product that 29/07/2014 05/08/2014 Children, Okinawa meets the Opera House’s Families & programming strategy and focus Education on Asian performance work; meet international producers and artists to explore opportunities and negotiate deals; develop business relationships, mainly with Asian industry professionals, that enable access to new young audience product for future programming.

165 Reporting Government Privacy Management The Opera House Privacy Management Plan includes: @@ Descriptions of the key categories of personal information held by the Opera House. @@ Procedures for facilitating the public’s right to access information held about them. @@ Procedures for privacy complaints and internal reviews. Details of how the Opera House protects the privacy of its customers, including visitors to its website, are available at sydneyoperahouse.com. To obtain copies of the Opera House’s latest Customer Privacy Statement (updated in March 2015), Privacy Management Plan, Privacy Policy and/or to make enquiries about privacy issues, contact:

Privacy Contact Officer Sydney Opera House, GPO Box 4274, SYDNEY NSW 2001 Telephone: (02) 9250 7111 Email: [email protected]

The Opera House did not conduct any new internal reviews under section 53 of the Privacy and Personal Information Protection Act 1988 (NSW) during the reporting year. A number of customers chose to opt out of receiving direct marketing material from the Opera House. The review of the Opera House’s customer information handling practices continued during FY15.

Public Interest Disclosures No public interest disclosures were made or received by the Opera House during the year. The Opera House Public Interest Disclosures Policy is available to staff on the staff intranet and is also provided on the Opera House website for the information of stakeholders and the community. A variety of ongoing and new actions were taken during the year to ensure that staff are aware of the content of the Public Interest Disclosures Policy and protections under the Public Interest Disclosures Act, 1994: @@ Public interest disclosures reporting requirements incorporated into the Staff Orientation Program. @@ Public interest disclosures requirements incorporated into the Code of Conduct for staff. Annual Code of Conduct review requirement continued for all existing staff. @@ Code of Conduct and Public Interest Disclosures Policy included in all starter packs for new employees. @@ Online compliance and awareness training modules for Code of Conduct and Cash Handling continued to be offered with modules for Public Interest Disclosures and Gifts and Benefits implemented. @@ Public Interest Disclosures Policy review and update commenced for finalisation in FY16.

166 Risk Management

AUDITS (ALSO REFER CORPORATE GOVERNANCE P.42) The Sydney Opera House Trust Audit and Risk Committee assists the Trust in fulfilling its responsibilities in relation to financial reporting, risk management, compliance and the audit function. Performance and compliance audits were carried out by Deloitte Touche Tohmatsu on a variety of business processes and systems during the year. The objective was to evaluate the design and operating effectiveness of internal controls established and to make recommendations for improvement. The following audits occurred as part of the FY15 Internal Audit Plan for the Sydney Opera House. @@ Business Continuity Management / Disaster Recovery Planning, April 2014: evaluation of selected procedures associated with Business Continuity Management and Disaster Recovery Planning. The scope was limited to activities occurring during the period 1 January 2013-14 April 2014 and included governance, risk/business impact analysis, response strategies, resources and interdependencies, documented plans, communications strategy and testing and maintenance. This audit was conducted in FY14 and reported in FY15. Two audit issues were identified with four associated recommendations. All recommendations have been actioned. @@ Philanthropy, May 2014: evaluation of selected procedures associated with philanthropy management and operations. The scope was limited to transactions occurring during the period 1 January 2013–12 May 2014 and included planning and strategy, donor satisfaction, staff training and compliance with legislation. This audit was conducted in FY14 and reported in FY15. Six audit issues were identified with 10 associated recommendations. All recommendations have been or are currently being actioned. @@ Work Health and Safety, September 2014: evaluation of selected processes associated with Work Health and Safety risk registers and systems. The scope was an evaluation of the adequacy, efficiency and effectiveness of systems and processes used by the Opera House to manage the general WHS risk register and event and production risk assessments for events. Three opportunities for improvement were identified with nine associated recommendations. All recommendations have been or are currently being actioned. @@ Human Resources Information Management System, November 2014: evaluation of selected processes associated with the implementation of the Human Resources Information Management System (HRMIS). The scope covered areas of project governance, project implementation and the achievement of the stated project outcomes. The audit included benchmarking the Opera House with three organisations and the HMRIS ANAO Better Practice Guide 2013. Three opportunities for improvement were identified with six associated recommendations. All recommendations have been or are currently being actioned. @@ Follow-up Review of Internal Audit Actions, February 2015: evaluation of processes associated with the following-up of audit recommendations. The scope of the audit was an evaluation of the effectiveness and efficiency of systems and processes used to update the Audit and Risk Committee on management actions and management completion of all actions as agreed. Two opportunities for improvement were provided with four associated recommendations. All recommendations have been or are currently being actioned. @@ Environmental Sustainability Management, February 2015: evaluation of processes associated with the Opera House’s alignment with requirements of Standard ISO 14001:2004 Environment Management Systems – Requirements with Guidance for Use. The scope of the audit was an evaluation of the adequacy of the Opera House Environmental Management System documentation in alignment with the ISO Standard. Outcomes of this audit will be reported in FY16. @@ Information Systems Security, March 2015: evaluation of selected aspects of Information Systems Security, focusing on: @@ alignment with the NSW Government Digital Information Security Policy (DISP) and remedial actions to ensure alignment with the DISP; @@ key security risks relating to electronic storage and the transmission of building plans; and @@ key security risks relating to elements of ticketing information systems (payment systems). Outcomes of this audit will be reported in FY16.

INTERNAL AUDIT AND RISK MANAGEMENT ATTESTATION FOR THE 2014-2015 FINANCIAL YEAR FOR SYDNEY OPERA HOUSE TRUST (THE TRUST) AND SYDNEY OPERA HOUSE TRUST STAFF AGENCY We, the Trust, are of the opinion that the Trust has internal audit and risk management processes in operation that are, excluding the exceptions and matters described below, compliant with the core requirements set out in Treasury Circular NSW TC 09/08 Internal Audit and Risk Management Policy. We, the Trust, are of the opinion that the internal audit and risk management processes for the Trust depart from the following core requirements set out in Treasury Circular NSW TC 09/08 and that (a) the circumstances giving rise to these departures have been determined by the Portfolio Minister and (b) the Trust has implemented the following practicable alternative measures that will achieve a level of assurance equivalent to the requirement:

167 Reporting Government Ministerially Reason for Departure and Description of Practicable Alternative Measures Determined Departure Implemented

Core Requirement 3 The Trust has made alternative arrangements that will achieve equivalent outcomes to (Independent Chairs and the requirements. Members) An Audit and Risk Committee (the Committee) has been established. The Committee Charter requires three to five independent Committee Members to be appointed by the Trust. There were five Members of the Committee over the course of the year due to changes in Trust membership. The Trust was satisfied that the Members collectively possessed the skills and knowledge to effectively carry out the functions of the Committee. A number of these Members were prequalified as an Audit and Risk Committee Independent Chair and/or Member. None of the Members were employees of the NSW Public Sector. To ensure continuity over a transitional period for the organisation, the Chair of the Committee was appointed for a further one-year period, beyond the maximum four- year term. A new Chair of the Committee was appointed from 24 March 2015. By 19 June 2015, all Committee Members were prequalified and the Trust was fully compliant with Core Requirement 3.

The Trust considered NSW Treasury’s release of a draft Internal Audit and Risk Management Policy for the NSW Public Sector for consultation as an opportunity to further assess its practices against the existing and proposed policies. This brought to light an area of ambiguity between the financial delegation conferred on the Audit and Risk Committee by virtue of the Sydney Opera House Trust Act 1961 and the requirements of TC 09/08 that Audit and Risk Committees should not have delegated financial responsibility. The Trust has since taken measures to clarify this ambiguity and from 1 July 2015, the Audit and Risk Committee no longer has financial delegation. In addition, the Trust has created an additional senior executive level position responsible for the Trust’s risk management function. We, the Trust, are of the opinion that the Audit and Risk Committee for the Trust is constituted and operates in accordance with the independence and governance requirements of Treasury Circular NSW TC 09/08. The Chair and Members of the Audit and Risk Committee in FY15 were: @@ Peter Mason AM – Chair (Term: 1 January 2012–21 January 2014; Chair: 24 March 2015–Present) @@ Catherine Brenner – Member (Term: 13 May 2009–Present; Chair: 1 January 2010–23 March 2015) @@ Brenna Hobson – Member (Term: 22 January 2014–Present) @@ Chris Knoblanche – Member (Term: 6 November 2013–23 March 2015) @@ John Symond AM – Member (Term: 22 January 2014–31 December 2014) These processes, including the practicable alternative measures implemented, provide a level of assurance that enables the senior management of the Trust to understand, manage and satisfactorily control risk exposures. I, Nicholas Moore, on behalf of the Trust in accordance with the resolution of 18 September 2015 declare that this Internal Audit and Risk Management Attestation is made on behalf of the Trust and the controlled entity Sydney Opera House Trust Staff Agency. Yours sincerely Nicholas Moore Chairman, Sydney Opera House Trust 18 September 2015

DIGITAL INFORMATION SECURITY POLICY ATTESTATION I, Louise Herron, am of the opinion that the Sydney Opera House had a partially compliant Information Security Management System in place during the financial year being reported on consistent with the Core Requirements set out in the NSW Government Digital Information Security Policy. The Sydney Opera House is working towards a fully compliant Information Security Management System. In the meantime, the Sydney Opera House has in place interim controls believed to be adequate to mitigate significant risks to its digital information and digital information systems. There is no agency under the control of the Sydney Opera House which is required to develop an Information Security Management System in accordance with the NSW Government Digital Information Security Policy. A risk assessment will be carried out by June 2016 to validate the adequacy of interim controls and to ascertain whether certified compliance with “AS/NZS ISO/IEC 27001 Information Security – Security Techniques – Information security management systems – Requirements” is required.

168 BUSINESS CONTINUITY AND EMERGENCY PREPAREDNESS In FY15, the Opera House reviewed and refined its plans and strategies for handling potential incidents and the operational documentation used to guide preparedness, prevention, response, mitigation and recovery. The Opera House undertook practical emergency exercises in order to audit emergency management practices. We engaged our presenting partners in workshops and clarified emergency management roles and responsibilities with presenting partners and external emergency services. A dedicated emergency coordinator and a crisis coordinator were appointed to manage our escalation and crisis management plan, and to maintain regular communication with major stakeholders, Resident Companies and food and beverage operators. We conducted exercises for a full suite of business recovery plans and response coordination, and we continued to provide appropriate staff training.

Senior Executive Service There are four Senior Executive Service positions at the Opera House. Two positions are filled by women.

SES Level 2014/15 2013/14 2012/13

2 ------

3 2 (1 female) 2 (1 female) 2 (1 female)

4 vacant 1 (1 female) 1

6^ 1 (1 female) 1 (1 female) 1 (1 female)

^ This position is established as SES Grade 5. Ms Herron was appointed by way of personal allocation to SES Grade 6 from 6 August 2012.

Ms Claire Spencer resigned as Chief Operating Officer on 31 October 2014.

AVERAGE REMUNERATION OF SES OFFICERS AT 30 JUNE

SES Level 2014/15 2013/14 2012/13 2011/12

2 ------

3 $228,276 $224,059 $241,250 $223,450

4 -- $256,250 $232,501 $261,300

6 $373,200 $366,850 $358,650 $339,850

PERFORMANCE STATEMENT Louise Herron AM Chief Executive Officer, SES Level 6 Appointment at Level 6 commenced on 6 August 2012. Total remuneration package: $373,200pa The Secretary of NSW Trade and Investment has expressed satisfaction with Ms Herron’s performance of her responsibilities. Ms Herron worked to the delivery of the Opera House business plan and budget, endorsed by the Trust on 20 June 2013. Key activities and achievements are outlined in this report. The Opera House is an Australian icon. It is the flagship performing arts venue in Sydney and a signature Sydney landmark. Its reputation and standing are maintained through the efforts of the management team and the client arts companies that perform in it.

169 Reporting Government Wage and Salary Movements A 2.27% wage increase was granted to staff covered by the Crown Employees (Public Service Conditions of Employment) Award 2002, effective from the first pay period commencing on and after 1 July 2014. A 2.27% increase was granted to staff covered by the Opera House Enterprise Agreement 2013, effective from the first pay period commencing on and after 1 July 2014. A 1.88% wage increase applied to Senior Executive Service staff effective from 1 July 2014 as per the Statutory and Other Offices Remuneration Act 1975.

Workplace Health and Safety (WHS)

WHS MANAGEMENT SYSTEMS WHS consultation increased with the establishment of four new work groups covering the areas of theatre and events, building, visitor-focused departments and office-based staff. This year they elected and trained Health and Safety Representatives (HSRs) and appointed senior management sponsors. Each HSR met at least once each quarter with the work group management sponsor to discuss topical safety issues in the workplace and review incident and hazard reports. The Opera House continued to provide new Trustees with WHS due-diligence briefings. These 90-minute sessions covered the duties of officers under harmonised Work Health and Safety legislation, the range and scope of health and safety risks inherent to Opera House operations and Opera House safety performance.

INJURY-PREVENTION STRATEGIES AND INITIATIVES Approximately $860,000 was spent on safety-related projects. Some project highlights: @@ An easily installed and dismantled bespoke temporary ramp for the Joan Sutherland Theatre (JST) orchestra pit to facilitate better manual handling. @@ New electrical interlocking gates at the rear of the JST stage and organ loft area to improve worker safety near the rear platforms. @@ A chain motor installed in the JST to assist manual handling of heavy items from the stage to grid. @@ Work has started on the anemometer (wind-speed measuring) project.

STAFF TRAINING, SUPPORT AND MOTIVATION Following a strategic safety-training plan, 2,240 hours of safety training were delivered this year. They included hazard-specific training, such as confined spaces, asbestos and height safety, as well as leadership, risk management and contractor safety. Highlights include: @@ 141 staff attended three-hour Safety Leadership training. @@ 97 staff attended tailored manual-handling training from our trainer/physio/ergonomist external trainer. @@ 29% of total training hours was spent on training courses related to height safety, attended by 81 staff.

CONTRACTOR AND THIRD PARTY SAFETY MANAGEMENT Four resident contractor Safety Management System audits were completed in FY15 and audit recommendations actioned.

170 Incident Reports (Staff-Related) 2009 to 2015

Year 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09

Number 158 207 225 215 245 282 221 of Staff Incidents

Over the past five years the number of Opera House staff-related Incident Reports has trended downwards. In FY15 fewer reports were logged than expected. An analysis of incident and hazard reports for FY15 is under way to understand more about this trend. In FY15 24 new claims were lodged. At 30 June 2015 there were seven claims open with all staff back at work. The number of days absent relating to compensable claims has reduced by 64% in the past year, and has reduced year on year for the past four years. Opera House workers compensation deposit premium has reduced year on year, over the past five years to almost half the FY12 level and three- and five-year hindsight premiums result in refunds. These excellent results are attributed to prevention programs and best-practice injury management and early prevention programs. The average cost of workers compensation claims has been reducing over the past three years and is well below the Treasury Managed Fund average.

New Workers Compensation Cases lodged 2009 to 2015*

Year 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09

Number of 24 24 31 45 42 48 44 new Workers Compensation Cases*

* Includes all new workers compensation cases including provisional liability (including no-cost claims) and declined liability claims.

FY15 has continued to see a favourable downward trend in the LTID Incident and Frequency rate.

Lost Time Injury Disease Incident and Frequency Rates 2009 to 2015

Year 2014/15 2013/14 2012/13 2011/12 2010/11 2009/10 2008/09

LTID^ 20.79 25.9 32.5 31.3 52.56 57.45 53.05 Incident Rate

LTID# 10.2 12.8 15.9 15.3 25.4 28 26 Frequency Rate

^ Lost Time Injury Disease (LTID) Incident Rate is the number of work-related lost time injuries (1 day or more) per 1,000 employees.

# LTID Frequency Rate is the number of work-related lost time injuries (1 day or more) per million hours worked.

HEALTH PROMOTION AND WELLBEING 320 immunisations were administered this year in the Influenza Vaccination and Awareness program, with good participation from our presenting partners. Regular on-site company-funded yoga and Pilates classes continued to get excellent feedback and good attendance.

171 Reporting Government HIGHLIGHTS FY15 Safety is one of our core values. We continued to work on the action plan associated with our FY14 Safety Culture Review, conducted by Deloitte, introducing an on-line safety newsletter, executive safety interactions and Safety Leadership Training. The Opera House Executive restructure integrated safety with security and risk management in the single portfolio Safety, Security and Risk. FY15 results include: @@ The CEO and Executive Team participated in more than 50 "safety interactions" with staff and met regularly with elected employee Health and Safety Representatives to improve awareness and importance of safety. @@ Continuing the downward LTI trend over the past five years, to 10.2 (from 12.8 in FY14; following halving between FY10 and FY14). Further reduction is part of a three-year safety strategy. @@ Lowest number of recordable incidents since such records have been kept. @@ Managers, supervisors and staff attended more than 2000 hours of targeted safety training. @@ Four resident and project contractors underwent a safety management system audit. @@ All risks on the WHS High Risk Register have been audited. @@ Reviewed and updated Safe Work Procedures. @@ The Opera House safety management system audit this year focused on WHS Risk Registers and Event Risk Assessments. The results were positive, with auditors recommending opportunities for improvement, now in progress. This year's Opera House safety month celebrations included record attendance and new safety awards. Highlights included: @@ Three Opera House staff awards. @@ A celebration of our elected Health and Safety Representatives. @@ An overview of the findings from the wellbeing survey conducted in 2014. @@ A healthy BBQ lunch on the Western Broadwalk.

STATUTORY/GOVERNMENT REPORTING Details of injuries and prosecutions under Work Health and Safety Act 2011 There were five incidents notified to WorkCover NSW in FY15 and an additional two incidents notified that were outside the control of Sydney Opera House, for example, within a restricted location used and controlled by a contractor. There were no WorkCover investigations, prosecutions or notices issued.

172 173 MAJOR Phillip John C Dan Mackenzie^ Wolanski AM* Conde AO^ DONORS Michael Anonymous (1) Robbie Cooke^ Markiewicz^ Our HONOUR Sydney Opera The Hon Helen Alexandra House staff: Coonan^ Martin*^ The Balnaves Michelle Dixon; Donors Foundation* Hugh Lamberton; Kieren Cooney Louise Mason^ The Getty Lauren Martin; Phillip Cornwell Kate Mason*^ Crispin Rice^; & Cecilia Rice^ Foundation Carolyn Peter Stewart-Smith*; Michael Mason AM*^ The Estate of the Crouch AO^ late Joy Lindsay Brook Turner^ Jane Ian Darling^ Mathews AO^ John Symond AM CHAIRMAN'S Michael Darling^ Julianne Maxwell^ Kim Williams AM* LEADERSHIP Miranda Deidre & Kevin CIRCLE Darling Tobias^ McCann AM^ Anonymous (1) Robert Albert AO The Hon Mrs Sophie McCarthy & Libby Albert* Ashley Dawson- & Tony Green^ BENEFACTOR Damer AM AMP Foundation Wendy The Alexandra Limited & Lloyd Anne Davis McCarthy AO^ Martin Family The Balnaves Greg Dean Tim McFarlane^ Thank you to all our Foundation* Foundation* John B Bill Moss AO^ donors for your tremendous The Wolanski Phillip & Fairfax AO^ Foundation* Catherine Brenner Michael support. You help us Erin Flaherty Musgrave^ secure and renew the Patsy Crummer & David PATRON Maloney AM^ Annabel & Opera House for future Roman Fong* Rupert Myer AO^ The Bikuben The Greatorex Stephen Found^ generations of artists, Foundation A/Prof Michael Foundation* Chris Freeland & J Neil^ audiences and visitors, The Dreyer Sheli Lubowski^ Nicole McKenna^ Foundation Dr Eileen Ong^ and ensure this wonderful Danny Kate & Peter Simon Pollard^ building is open to all. Stephen & Julie Mason AM*^ Gilbert AM^ Fitzgerald Stephen Pollitt^ Rebel Penfold- David Gonski AC^ We are especially grateful The Obel Family Russell OAM* David Redhill^ Foundation Diane Peter Weiss AO*^ Grady AM*^ Crispin Rice^ to our Founding Donors for Anonymous (1) their ongoing support since Christina Bob Richardson^ & Maurice the introduction of the UT ZON / TRIBUTE Green AM Janne Ryan^ LE CORBUSIER Opera House’s philanthropy SJ Bell* Leslie & Ezekiel TAPESTRY Ginny Green Solomon AM^ program in 2007, and to the Beverley & DONORS Jillian Segal AM^ Founding Idealists who are Phil Birnbaum* John M Green Peter Weiss AO*^ & Jenny Green^ Kathy & (Lead Donor) Robert Hansen the first members of our & Dr Annabelle Sue Griffin^ Greg Shand^ new donor program. Helen & David Farnsworth Xavier Shea Baffsky AO^ Gail Hambly^ Jane Kift* Ann Sherry AO^ Andrew Matthew Harris Dr Eileen Ong Cameron AM^ Robert Hansen Ben Smith^ Michael Stephen Pollitt^ & Dr Annabelle Bruce Solomon^ Crouch AO^ Farnsworth Janne Ryan^ Zandra Stanton^ Michael Darling^ Brett Haylock^ Sydney Opera Ross Steele AM^ Louise House Ladies' Bruce Herron & Herron AM^ Committee*^ Elizabeth Mark^ John Swain^ Richard Johnson Ken Turner^ Hal & Linda Giam Swiegers^ Herron^ AO MBE Pamela Turner^ Sydney Opera Andrew Kaldor Louise House Ladies' AM & Renata Herron AM^ Committee*^ Kaldor AO*^ IDEALISTS Brenna Hobson^ John Symond AM^ Anne & John Matthew Jonathan Hoyle Leece AM Allchurch^ Charlie Taylor^ Deborah Jones Colleen & Robert Anne Amigo Gabrielle Trainor^ Leece AO RFD* Peter Joseph AM^ Helen & David Lucy Turnbull Ken Maher Baffsky AO^ Andrew AO & The Kaldor AM*^ Margaret Sixel Neil Hon Malcolm & Dr George Balnaves AO*^ Renata Turnbull MP^ Miller AO* Kaldor AO*^ Charlene Brook Turner^ Peter & & Graham John Kaldor AM Ken Turner^ Kate Mould^ Bradley AM^ & Naomi Milgrom AO*^ Pamela Turner^ Rebel Penfold- Catherine & Russell OAM* Phillip Brenner^ Julian Knights^ Virginia Turner^ Penelope Clark Butler Chris Phil Vernon^ Seidler AM Knoblanche AM^ Andrew Sam Walsh AO^ Joseph Cameron AM^ Holly Kramer^ Rob & Bron Skrzynski AO* Mark Carnegie^ Michelle & Wannan^ Ezekiel John Landerer Sara Watts^ Solomon AM Paul Cave AM*^ CBE AM^ Peter Weiss AO*^ The Utzon Professor & Sheli Lubowski^ Foundation Mrs David Sam & Celermajer AO^ Helen Lynch AM Judy Weiss^ & Helen Bauer^

174 *Founding Donor, and ^Founding Idealist Ray Wilson OAM^ The late Joy Michael Bereyne Mark Carmichael Kerem Daldal Lindsay Phillip Marta Besevic Felice Cary Barbara Dampney Wolanski AM*^ And notified bequests from Gloria Beyer Michael Casey Colette Dash Cathy Yuncken^ Donna L St Clair Grant Bigg-Wither Riskarella Catalan Rachael Davies Anonymous (1) Christina Billiau Steven Cateris Christopher Davis ACCLAIM Justin Birrell Christian Desmond Davis Catsanos Suzi Aboud Natasha Blazek Deirdre Davison Annette Adair* CIRCLE OF Daniela Cavalletti FRIENDS Pauline Bleach Mark Davison Ian Andrews Li Ce Sydney Opera Kya Blondin Amit Dawar Mark Cetin Jane Albert House has 925 Jack Bloustein Tracey Dawes- & Andrew Fisher current donors Yido Chae Lucas Catherine Blue Tony Cavanagh who have donated generously to our Georgina Chakar Andrea De & Jann Gardner Daniel Bodily Wattignar Circle of Friends. Danica Chandra Emily Chang* Gay Boersma Brian Deane Diana Chang Yvonne Chang John Bonato Rosalie Degabriele Hayley Abbott Jean Chay Annabelle Clare Bonner Jan Maria Philippp Chapman Helen Ablett Lia Checketts Lores Bordin Degenhard Catherine Cunio Suzi Aboud Charles Chen Therese Maxime Amy Denmeade Catherine Adams Boschenok Jianfeng Chen Delplanque Dr & Mrs B Dutta Marie Adams Jeanine Bow Kefan Chen Ann-Marie Denham Sam Fatrouni Karina Affarian George Bowen Alala Chiara Ben Denton Ryissa Fogarty* John Agland Marston Bowen Keith Christie Rachel Desmond Sue Gazal & Elizabeth Alarcon Henry Boydle P Christmas Graham Lemnell Todd Dewberry Paula Aldwell Renato Bozzolo Sergio Cia Garcia Michelle Amanda Alegre Haryana Dhillon Hazelbrook Ben Bracken Georgina Clare Brigitte Allegra David Di Susan Johnston Margaret Anthony Clarke Francesco Nonglak Bradbery* James Kirby Kylie Clarke Jerome Diaz Amornchainon Pam Bradbury & Claire Wivell Lauren Clarke Nancy Dickman* Plater Kenneth Anderson Ann Braybon Liz Clarke Monory Dith Stephen Knapik Maya Arairo Helen Brennan Sophie Clarke Jennifer Dixon Life's Barry Arnold Patricia Bridges Opportunities Rhett Clayton Michelle Dixon Joshua Arrebola Tony Bridgewater Ruth & Bob Magid Eddie Cliff Alek Djokovic Irina Aryal Fay Briggs Otto & Agnes Alex Cloumassis Slobodan Jeff Atkins Janet Briggs Matrai* Joel Cohen Djordjevic Kem Austin Janet Broady* Joan Millard* Daniel Cohn Nicola Dobson Ben Aveling Vitor Brock Matthew Muller Jacob Collison Christophe & Lex Thornton Vanessa Awwad Erin Brockhurst Domergue Robyn Coman Adj/A/Prof Adam Axon Donna Brotherson Elizabeth Donati* Anna Shepherd Lucas Comino Garry Bachell Hannah Brown Amanda Donovan Roy Neumann* P M Conder* Rob Baillie Heather Brown Stefica Dragicevic Martin Portus Michael Condon Sandra Baillie Josh Brown Inge Dreger Jo Pretyman Laura Connell Jenny Ball Sarah Brown Julia Drew Crispin Rice^ Margaret Connell Jean Vivianne George Bru Rachel Driessen Adj Assoc Prof Band Stan Conner* Michelle Bruell Agnieszka Drozdz Anna Shepherd Nina Banfield Luke Connor Bronwyn Simons R Brunton- Doris Du Alexander Barinov Simmonds* Brendan Cook Donna L St Clair Raymond Henry Barlow John Brynford- Peta Cook Dudgeon* Leonie Szabo* Alison Barnes Jones Joshua Coombes Margaret Duggan Amanda & Louisa Barnett Jennifer Buck Kristin Coombs Robert Tobias Sam Dunlevie Snjezana Barrack Marion Bug Esther Cossman Nick & Nikolce Dunoski Miranda Tobias^ Daniel Barrett Nick Bulgin Dylan Court Frank Dziersk Brook Turner^ Dan Barron Francy Bulic Dominic Cousins Lisa Ear Dr A Waldman* Lisa Bartel Geraldine E Bull* Gary Cox Peter Ebeling- Stephen Wells Julia Bartrim Lillian Bullard Justin Cox Vincent & Mischa Way Mahe Bastien Mavis Bulman Jacob Crane Kate Edgar David Wynne & Neil Burns Kirsty Edwards Scott Marinchek Bisli Batageli Bessie Crozier Paul Burton Maadi Einfeld* Anonymous (3) Liliya Bayazitova Anne Cummins* Joanna Bayer Scott Butler Linda Cunningham Robert Ek Scott Beale Emily Buxton Jane Curbishley Marilyn Escosa* BEQUESTS Dr Victor Bear* Mark Cahill Linda Curnow* Ana-Maria Estevez The Opera House acknowledges Helen Beard Peter Campbell Suzanne Curtis Karen Evans the timeless Simon Candy Marc Evans generosity of Glen Beaumont Samuel Cuschieri Leisa Cannon Elizabeth Evatt The late Colin Georgina Beck Sheenagh Dabbagh A Foster Piotr Belter Siobhan Carey Elizabeth Evatt Andrew Bennett

*Founding Donor, and ^Founding Idealist 175 Our Donors Pierre Everaert Paul Golding Mira Hirnerova Anne Kelly-Smith Nola Ezzy Sharon Robert Ho Martyn Kemp Goldschmidt Edward Federman Chloe Hoffmann Jack Kennedy Sharon Golledge Stephen Fell Leesa Hogan Jennifer Kenny Kelly Gomez Lyn Fetterplace Shannon Hogan Vanessa Kerswell Fangfang Gong Phillip Fiebig Justin Hoile Carol Ketelhohn Susan Goodman Julianne Figar Tara Holden Angelina Kevill- Lori Gorski Davies Paul Finch Anne Holes Tim Govan Mona Khammo Eleanor Findlay Andrew Hollo Samantha Graham Aida Khanpour Marcel Finlay Jesse Holloway Ann Green Narit Kimsat Georgina Finn Sophie Holloway Robert Green Dylan King Clare Firth David Holmes Ann Greenfield Robyn and Vince Scott Fisher Alex Holt King Richard Grellman Debra Fitzgerald Timothy Holt Laszlo Kiss Ruby Grennan Miranda Minako Homma Kevin Kneebone Fitzgerald Anthony Grey Rebecca Shona Knowles Many of us remember Lauren Fitzhenry Jaclyn Griffin Honeysett Michelle Ko making our first visit to Pauline Fitzpatrick Pauline Nigel Hope Griffin AM* Rodney Kohalmi the Opera House when Andre Flament Valerie Howell Olga Grigorchuk Rick Kolega we were young, and your John Fleming Jim Hull John Grobbelaar Ben Korbel support for our Children Tina Fleming Ange Humphries Judy Groom Kaliopi Korras* and Families programs Hannah Flitcroft Erin Hunter Natasha Margo Kouvaris makes the Opera House a Fiona Floyd* Grzegorczyn Rebekah Hunter* Jennifer Krallis Jeff Folland Anna Gurochkina Robyn Hurlston place where children are Lidija welcomed and where we Ann Fong Nora Gyenis Todd Yilmaz Huseyin Krebs-Lazendic can help create a life-long Vanessa Forcella David Gyger Isaac Hutchins Margarita Kucherenko love of the arts. Betty Fotofili Milva Habib Dewi Hyde Brad Kupkee Michaela Francis Parven Haider Emeric Israel Everyone in our society, no Nancy La Noel Franco Glenn Haifer Toula Ivanac matter their circumstance, Joselyn Lakin Gael Fraser Phil Halton Samantha Ivancic should be able to Catherine Lam Ruth Freedman John Hamilton Kurmet Jaadla Leela Landers experience the Opera Neil Fricker Kathleen Hamilton Allan Jackson Robert Landsberry House. By supporting our Kim Frumar Lachlan Hammond Prudence Jacobson Sara Lane access programs, you Taotao Fu Xiao Ming Han* Ros James Susan Langan help people living with Nikki Gale Gerard Hansen Kainaat Jamil Kellie Langbecker disability, disadvantage or Javier Garces Robert W Hansen Jodie Jansen Patricia Langham isolation to experience so Montserrat Garcia Tamas Hanyi Lopez Lee Jenkins Patrick Langrell many of the wonders the Li Hao Beverley Garlick Victoria Jenkins Brian Lapsley Opera House has to offer. Chris Hardy Julie Garrash Karen Jensen Miffy Lau Greg Harkin Mark Gascoigne Alastsir Jensen- Sheena Lavery Louise Mackinnon Jennifer Gauci Harland-Cox Jenifer Law Lucie Jeremy Lluwannee Lia Harman Jennifer R George Kelly Jervis Lean-Fore* Francesca Harris Julie Roslyn Jewkes Rebecca Lebler Georgopoulos Renate Harris Younju Jo Amy Lee Michael Tim Haslam Gheorghiu Lilian Johnston Colin Lee Rebecca Hazel Habib Ghosn Amie Jones Danica Lee Willem Hazelaar Denise Gibson Graham Jones Fona Lee Bianca Healey J L Gibson Adam Jordan Jody Lee Brett Heath Martin Giddings Nick Joyce Claire Lehmann Kathy Hedger Daniel Gierhake Elizabeth Mikayla Leigh Kaisa Heikkila Julian-Tivoli Marjanna Gilchrist Elizabeth Liane Heinke Barbara Kadji Harriet Lenigas Libby Gilkes Olivia Henderson Sonia Karoll Leticia Lentini Susan Gillman Linda Herd Vaishali Kashyap Vanessa Leung Debbie Lee Ginges Glenys Hess Christina Daniel Leverington Kassimatis Sue Giugni Danielle Hickie Maya Levy Sarah Kavanagh Philipp Glanz Gwen Higgins* Joseph Licha Luba Kaye Boris Gligorevic Carissa Hill John Liefeld Colleen Keating Tania Glivar Dominique Hill Yuanyuan Lin Kirsty Keating Sally L Glover* Mary Hill Jodie Lindsay Andrew Kelly Timothy Godfrey Rachael Hilton Ritis Linge Katrina Kelly

176 *Founding Donor, and ^Founding Idealist David Little Ian & Pam Kristie Nicolas Peter Quinlan Piyush Shah McGaw* Zikun Liu Karla Nicoletti Paul Quinn Ahi Shahar Craig McGrath Katie Lively Justine Niemczyk Neil Raffan Michael Shannon Sarah McGregor Tanya Ljubic Nathalie Nizri Scott Raisin Christopher Shaw Robyn McGuire Janelle Lloyd Aryka Noble Toby Ralph Kate Shaw Janelle McIntosh Samantha Peter Noble Andrea Randell Philip Sheather Lombardo Alison McIntyre Susan J Nocom* Carl Ratcliff Dean Shein Chris Loth Sheila J McKee* Anna Nordenson Paul Rathbone Elaine Erin Lotherington Richard McLean Bateson Shukri-Goodman Alissa Rau Heather Loudon Marina McMaugh Cristina Northcott Melissa John Ravic Siasat-Soriano Natasha Lovatt Sally McMurray Hannah Oates Louisa Read Dr Evan B Siegel Amy Love Natalie Sofia McNamara O'Donoughue Robyn Regan Lauri Sigur Chloe Lovett Georgene McNeil Diana O'Halloran Jen Reid Luis Silva Jennifer Lowe Jean McPherson Peter O'Loughlin Karen Reid Monty Silver* Shirley Lu Greg McTaggart Nadine O'Mara Gary Rhyder Sue Simic Marco Lucchi Christopher Meh Met Oncel Claire Richards Peter Sinclair Svetlana Lukovic McVinish Jenny Onyx Inger Richardson Paula Skien Vanessa Lupton Marina Meck Ritu Ooi Luke Richmond Daniel Smith John Mack Cate Medcraft Kathleen O'Rourke Alex Riding Jiva Smith Graeme Mackie Gavin Medhurst Julia Osborne James Riley Mark Smith Gareth Mackinnon Gillian Mee Graham Owens Dr Christine Norma Smith Catherine Macks Susanne Meister Riordan* Tom Oxley Sean Smith Sarah Maclaren Peter Melser Danny Rios Garces Tracey-Anne Susan Smith Miriam Pierre Menoud Oxley Jiovana Rios Macpherson Tim Smith Annette Metcalfe Elizabeth Pagel Barry Robards Takafumi Zoe Smith Maekawa Benoit Mignard Minerva Palsson Gail Robertson Weinreich Alexandra Smyth Tullio Maglione Evelyn Paradela Isobel Robertson Kim Millard Pam Snedden* Kurt Magner Barry Parker Aaron Robinson John Miller Marieke Justin Maguire Claire Parkhurst Amanda Robinson Snelleman Patricia E Miller* Luke Mahoney Sarah Patrick James Robinson Warwick Soden Nicola Milne Sarah Malecki Rebecca Pattison Tony Rodgers Amanda Solomons Sheree Mirabito Dusko Maljkovic Michael Peacock Jade Rodrigues Luke Sommen Kathryn Mitchell Leanne Mallett Duncan Peak Jeff Roesner Carol Soper Lachlan Mitchell Katherine Nicolas Malia Rogers Vanessa Southwell Manettas Olivia Mitrevska Pedemonte Martin Rogers Todor Spasovski Anna Brinda Mohan Sarah Pennell Joanna Manthopoulos Ada Stanton Beryl Molloy* Charlotte Pereira Romanowski Ana Marchese Zoe Stanton Nicholas Monteith Melinda Perrottet Ketvi Roopnarain Rachel Marchetto Jonathan Stark Alita Morgan Evan Petrelis* Gordon Rowe* Patricia Mardon Steven Startin John Morgan Tess Phillips Rachael Rowley Jason Mark Penelope Steel Mary Ann Massimo Piccardi Simon Ruhfus Rostron Mark Mortimer Davie Steele Richard Pickering R Rutherford* Anastasia Deepika Stephanie Stelter Kim Pilosio Carole Rutter Markakis Mortimore Andrijana Sam Ryan Neville Maroon Sascha Mosedale Oliver Pineda Stephanou Luke Sabic Jason Marrable Cordelia Moss Terri Pinkis Victoria Stephen Martin Saffrett Joseph Martinelli Elizabeth Samantha Jerome & Mountford Pirenc Bright Gemma Salteri Ludmila Stern Annette Mason Katy Moylan Maryanne Yvonne Samuel Jaye Stevenson Kwok-Ling Mau Pittaway Michael Mullens Danielle Sanby Rob Stones Maria Eduarda Luke Pittman Max Lesley Mullings George Kosin Sukchep Sarah Plummer Sanders-Leahy Robert Max* Kim Murphy J & K Surman Mario Podrecca Veronique Sanders Angus McBean Jenny Murray Bethan Sutton Mariola Pokorski Aaron Sargent Tim McCarron Johanne Ben Swatton Musgrave Jo Pretyman Alison Saunders Donald Barry Syme Jonathan Price McClintock Leigh Mutton Kay Saunders Dominic Szeker Keith Price David McCluskey Christine Na Sean Scales Alison Szymecki Ruth Pringle Amanda Patrick Nappa Peter Scaturchio Tom Tait McCubbine Gabrielle Pritchard Tamara Neal Diane Schaffer Jadranka Talic Mali McCutcheon Tim Prosser Lucie Nemcova Matthias Schmidt Daphne Tan Heather Natalie Purcell Barbara Schneider McDonald Christine Nettle Anant Tanna Tim Purss Solange Schulz Alex McEncroe Giovanna Ng* James Tanner Natalie Nguyen Charlie Lucy Scott Bradley McEwen Quillslinger Jon Taratoris Lorraine Nicholls* Samuel Scott Sharon McGann Jacqueline Quilter Ruth Tarlo

*Founding Donor, and ^Founding Idealist 177 Our Donors Dorothy Thomas Lauren White Gillian Thompson* Tom White H Thompson Simon Whiteman Nivek Thompson Maira Widholzer Peter Thompson Rixt Wiersma Caroline Thorburn Robin Wight Jane Thorn Gavin Wild Jean-Charles Amanda Williams Thoumire Bruce Williams Angela Tilling Caroline Williams Richard Tipper Dale Williams Johann Tomazic Melissa Williams Enrico Tomelleri Rachel Williams Donny Tran Troy Williams Alexandra Trute Matt Williamson Nicholas Tsekouras Tracy Willis With your support for our ground- Camilla Tulley David Wilmoth breaking education programs, school Peter Tulloch Jasmin Wilson students from all over Australia can Kathleen Turbott Samantha Wilson visit the Opera House ‘virtually’ Annetta Tyler Michael Winnett without leaving their classroom, and Jacinta Tynan Gail Wiseman disadvantaged NSW students can Robin Underhill Christine Wong attend the Opera House through Katie Uther Val Wood* Ton Van Der Pol Georgia Woodburne donor-supported subsidised tickets Jodie Van Kurt Woodford and travel costs. Enkhuyzen Felicity Woodhill Tracy Varcoe Cheryl Woodley GIVE TIMELESSLY Vera Vargassoff Rita Woods* Zarina Vasina Mark Worrall The Opera House is an enduring Elise Vaughan Daniel Worsley masterpiece. A gift in memoriam or in Luis Velasquez Alan Worthington your will is a timeless and public legacy Herran Carolyn Wright* that helps the Opera House continue to Radu Vintila Lee Wright transform Australian lives. Young Vo Matthew Wright Claudia Wade To learn more about making a gift Tammy Wu Benjamin Waerea on your own or a loved one’s behalf, Joanna Wymer John Waight please contact Tara Wynne James Wake Kai Yang Crispin Rice Daniel Wale Jiexing Yi Head of Philanthropy Kelly Wallwork Sally Yingling In confidence, on 02 9250 7266 or Emily Walpole Jeskerd Younes [email protected] Leonie Walters Tracy Yu David Wang Nicole Yuen Zhiping Wang DONATE NOW Zajaczkowski Brett Ward Family* sydneyoperahouse.com/give Charmaine Ward Aiqin Zhang or contact Coen Ward Mengying Zhang Louise Ward Charlette Zhao Crispin Rice Richard Waring Shuping Zhao Head of Philanthropy Alex Warren- Ken Zulumovski On 02 9250 7266 or Mccarthy Anonymous (72) [email protected] Corinne Watkins Sydney Opera House Trust is a Deductible Gift Recipient for the Alex Watson purposes of Australian tax law. All donations of $2.00 and above are OWN OUR tax deductible. Michael Watson HOUSE Simone Watt DONORS Kristi Wayman We also thank Julie Webster our many Own Our House P Weise* donors, whose Gabrielle names appear Wendelin on our website: sydneyoperahouse. Jens Wentrup com/thankyou Paul Westervelt Richard Whiley

178 *Founding Donor, and ^Founding Idealist Contact Information

HOURS OF OPERATION GUIDED TOURS The Opera House is open daily except for Christmas The official one-hour guided Sydney Opera House Day and Good Friday. Tour takes visitors inside the UNESCO world heritage landmark to discover the stories behind Danish architect Jørn Utzon’s remarkable achievement. The BOX OFFICE Sydney Opera House Tour runs daily from 9am and The Main Box Office is located in the Box Office Foyer, 5pm, also available in French, German and Spanish. Level 1 (upper level) of the Opera House. Standard French tours are offered once a day on Monday, opening hours are Monday to Saturday 8.30am to Wednesday and Friday, German tours are offered once 8.30pm, and Sunday 8.30am to 5pm. Operating hours a day, Monday to Friday, and Spanish tours are offered can vary and extend outside these times in accordance once a day on Tuesday and Thursday only. with performance schedules. Recognising the growing number of Asian visitors, the For performances commencing outside general Box Opera House offers Japanese, Korean and Mandarin Office opening hours, the Box Office remains open Tours. These 30-minute tours visit the Concert Hall and until 15 minutes after the final performance start time. Joan Sutherland Theatre and provide rare photography The Western Foyer Box Office, located at ground level, opportunities. The Asian Language tours run daily is open in accordance with performance scheduling for between 9.15am and 4.15pm. Playhouse, Drama Theatre and Studio events. The Backstage Tour reveals the workings of one the T: 61 2 9250 7777 world’s busiest arts centres. Intimate groups take a two-hour journey into the backstage world and finish E: [email protected] their VIP experience with breakfast in the Green Room M: Box Office – the domain of Opera House staff and performers. The Backstage Tour runs daily at 7am. Sydney Opera House The one-hour Junior Tour caters to families and GPO Box R239 includes interactive activities and unexpected twists and turns. The Junior Tour runs during School holidays. Royal Exchange Sydney The Tour & Tasting Plate option offers visitors a NSW 1225 Australia gourmet three-tier tasting plate at Opera Kitchen Bookings for performances and events can also be before or after completing an Opera House Tour. made online at sydneyoperahouse.com The Tour & Tasting Plate runs daily. A minimum of two people is required.

CONTACT CENTRE Tours can be purchased from the Box Office, Level 1 (upper level), at the Tour Meeting Point (Lower Open for telephone bookings and enquiries 9am Concourse) or online via the Opera House website. to 8.30pm, Monday to Saturday, and 9am to 5pm, Sundays. T: 61 2 9250 7250 or 9250 7777 T: 61 2 9250 7777 F: 61 2 9250 7096 W: sydneyoperahouse.com W: sydneyoperahouse.com/tours E: [email protected] E: [email protected] M: Contact Centre Sydney Opera House GPO Box R239 Royal Exchange Sydney NSW 1225 Australia

CAR PARKING Wilson Parking operates a car park at the Opera House open from 6am to 1am, seven days a week. Entry via the Opera House end of Macquarie Street, Sydney. T: 1800 PARKING (1800 727 5464)

179 NATIONAL RELAY SERVICE TRADE MARKS Customers who are deaf or have a hearing or speech The Opera House is the owner of the following impairment can call through the National Relay Service registered trademarks. at no cost:

TTY users phone 13 36 77 then ask for: WORD MARKS: 9250 7777 to book a performance @@ Bennelong 9250 7250 to book an access tour @@ Bennelong Bar 9250 7185 for accessible parking @@ Bennelong Bistro @@ Bennelong Café Speak and Listen (speech-to-speech relay) users phone @@ Bennelong Lounge 1300 555 727 then ask for: @@ Bennelong Walk 9250 7777 to book a performance @@ Bistro Bennelong 9250 7250 to book an access tour @@ Festival of Dangerous Ideas 9250 7185 for accessible parking @@ House:Ed @@ Kids At The House Internet relay users connect to the NRS (www. relayservice.com.au) and then ask for: @@ Live Performance Every Day 9250 7777 to book a performance @@ Message Sticks 9250 7250 to book an access tour @@ Opera Kitchen 9250 7185 for accessible parking @@ Own Our House @@ Sydney Opera House ADMINISTRATION AND @@ Utzon Foundation GENERAL ENQUIRIES

General enquiries can be made 9.00am to 5.00pm, DEVICES: weekdays. T: 61 2 9250 7111 F: 61 2 9251 3943 F: 61 2 9251 3843 (International) E: [email protected] A: Sydney Opera House Bennelong Point Sydney NSW Australia 2000 P: Sydney Opera House GPO Box R239 Sydney NSW Australia 1225 W: sydneyoperahouse.com or soh.nsw.gov.au

ANNUAL REPORT PROJECT TEAM

Thanks to Emily Cooper, Jo Daffron, Chris Daniels, Shape mark: protecting the image of the Sydney Opera Rob Hansen, Louise Ingram, Barbara Learmonth, House from any angle. Alison Nadebaum, Miriam O’Rourke and Katherine Sivieng. Special thanks to Carolyn Stewart-Smith. Design – Novel Creative The Opera House Annual Report 2014/15 is available on the internet at sydneyoperahouse.com. The total costs for production of the annual report including design, copywriting, additional photography, print format copies and internet version was $14,102 including GST.

180 Charter 42 Education 16, 17, 18, 24, Grants Children and Families 25, 26, 29, 30-31, 33, 39, 10, 11, 14, 22, 54-58 17, 30, 31, 38 51, 155, 160 Helpmann Awards Index Code of Conduct Elements of Our 9, 17, 25-28, 31, 32 144, 166 Strategy 7, 8-9 Highlights 8 Committees 42-44 Our People and History 4 Business Agility Conservation 40-58 Homeground 22, 42-43, 55, 159 8, 13, 17, 19, 31, 159, 161 Our Stakeholders Concrete 16-20 Host Team 144, 146 Conservation Hours of Operation 179 22, 43, 159 Performing Arts 24-34 Income Statements 56 Access 10, 11,13, 16, 17 Conservation Access Strategic Council 43,44 159 The Building 21-22 Independent auditor’s reports 63, 117 Plan 14, 17, 147 Conservation Visitor Experiences Accessible Management Plan, 36-38 Indigenous Experiences 4th Ed. Electronic Service 8, 9, 11, 13, 14, 17-18, 19, 17, 23, 25, 147 22, 42, 43, 159 Delivery 148 31-32, 33, 49, 50, 51, 154- 155, 159-160, 161, 162 Accessibility Heritage Eminent Architects Panel Masterplan 8, 21 Management 159 43, 44 Dance Rites 8, 13, 17, 19, 159 Courtesy Shuttle National Heritage Enterprise Agreement Bus 146 Listing 4, 5, 159 42, 70 Employment and Training Disability Action State Heritage Enterprise Strategy 9, 14, 17, 49, 50, 51, Plan 147 Listing 5, 159 16, 144 154, 160, 162 Aims and Objectives World Heritage Environmental Homeground 8, 13, 6, 7, 12-14, 31 Listing 4, 5, 11, Sustainability 17, 19, 31, 159, 161 22, 159 9, 18-19, 43, 148-154 The Alexandra and Lloyd Reconciliation Martin Family Foundation Consultants Carbon Footprint Action Plan 4, 14, 14, 19, 174 8, 21, 22, 83, 144 19, 151, 153 17-18, 19, 160, 162 All About Women Contact Information Energy Information Technology 8, 12, 13, 17, 18, 24, 32, 59 179-180 Management 148 8, 9, 19, 54, 148, AMP Capital 8, 17, 183 Corporate Governance Insurance 148, 160-161 42-48 150-151, 153 Artistic Associates Intel 13, 19, 183 12, 24 27, 28 Creative Learning Greenhouse Gas Emissions 154 Interbrand 13, 144, 183 Sydney Festival 13, 17, 18, 30, 147, 153, 162 12, 27, 28 Credit Card Use 144 Lighting 9, 19, 55 International performing arts 31, 32, 34 Sydney Customer Experience Waste & Recycling Philharmonia 144-146 19, 152 Investment performance measure 161 Choirs 12, 17, 27, Customer Water Use 28, 147 Feedback 145, 146 19, 149-150 Land Title Holdings 161 Audit and Risk Customer Research Equal Employment Learning and Committee 43, 44, 79, 146 Opportunity 154-155 Development 50-51 167-168 Deloitte Etihad Airways 13, 183 Legal 161 Audit and Risk 10, 11, 50, 167, 172, 183 Executive Management Lighting 9, 19, 22, 148 Attestation 167-168 Deloitte Access 12, 41, 50, 51, 169 Lloyd Martin Travelling Audits 152, 153, 167, 170, Economics report 10, 11 Festival of Dangerous Scholarship for Emerging 172 NSW Department of Ideas 32, 34, 59, 153 Arts Leaders 14, 19 Awards 9 Education 29, 30, 34, Financial Overview MADE by the Opera Babies Proms 50, 155, 160 54-58 House 8, 17, 18, 19, 159 17, 23, 31, 147 NSW Department of Financial Statements Maintenance 5, 11, 14, 22, Balance Sheet 54-58 Premier and Cabinet 31 60-138 54, 55, 159 Bennelong Point 5, 13, 18, Destination NSW, Fire Safety 156 Major works 21-22 30, 160, 161, 162, 180 Event Partner 183 Food and Beverage Marketing 37, 145, 146 Bennelong Restaurant Digital 5, 13, 16, 17, 18 9, 11, 37, 54 Maserati 8, 13, 17, 183 9, 12, 22, 37, 159 22,24, 33, 37, 51, 54, 160, Bennelong MasterCard 8, 13, 17, 183 Board of Trustees 162, 167, 168 Restaurant 12, 37 * Media Partners 11, 42-48 Digital Security Opera Bar 9, 12, 13, APN Outdoor 183 Box Office 8, 31, 57, 81 Attestation 37, 149 Australian Financial 145, 146, 148, 179 Education 11, 13, 16, Opera Kitchen 13, Review 183 Budget 42, 43, 143 17, 18, 23 30, 32, 33 37, 149, 180 Foxtel 183 Building and Heritage Facebook 18, 23 From Bennelong Point Committee 43, 44 Online 13, 18, 31, to the Nation JCDecaux 183 * Building Information 32, 38, 148, 183 8, 13, 18, 30, 39, 51 News Limited 183 Model 22 Social media 18 Gadigal people 5 The Sydney Building Works 43, 55 Twitter 18 Google 13, 18, 183 Morning Herald 183 Cahill, The Hon. JJ 4, 5 YouTube 13, 18, 24, Governance 11, 41, 42-48 Capital works 32, 153 Government Information Media Sponsor 21-22, 55, 72 Website 18, 19, 24, and Public Access Sydney’s Child 183 Car Park 179, 180 31, 145, 148, 162, 156-158 Mission 6 166, 179 CEO’s Message 12-14 Government Reporting Multicultural Policies and Disability Action Plan 147 Index 141 Chairman’s Message 10-11 Services Plan 161-162

181 Museum of Utzon / Le Baker & McKenzie Trustees 11, 14, 42-48, 85 Contemporary Art 17, 147 Corbusier Tapestry 183 Trustee Code of Conduct NSW Government 2, 8, 14, 17, 19, 20, Café Sydney 183 42, 144 174 4, 5, 7, 10, 11, 12, 14, 16, d&b audiotechnik Utzon, Jørn 17, 20, 21, 29, 54, 55 Presenter Satisfaction 183 2, 4, 5, 8, 14, 20, 22 Surveys 146 NSW Department DTZ a UGL Utzon / Le Corbusier of Education Privacy 166 Company 183 Tapestry 2, 8, 14, 17, 19, 29, 30, 34, 155, 160 Contact Officer 166 Dulux Group 183 20, 174 NSW Lotteries, Management 166 Utzon Design Principles Celebration Partner 183 King & Wood Public Interest Mallesons 183 4, 7, 22 Operating Expenses Disclosures 166 Valerie North and Joy 54-58 Moet Hennessy Reconciliation Action Australia 183 Lindsay Opera Award 14 Operating Revenue Plan 4, 14, 17-18, 19, Values 7 5, 16, 54-58 Rider Levett 160, 162 Bucknall 53, 183 Vehicle Access and Organisation Structure 41 Recording and Broadcast State Automation Pedestrian Safety project Overseas Travel 163-165 Studio 19, 32 133, 183 4, 22, 55, 159 Partnerships 13, 16, 183 Renewal Planning Yamaha Music Venue hirers 24, 34 Samsung, Principal 4, 5, 8, 9, 10, 11, 12, Australia 183 Venues and Theatres 14, 21, 22, 55, 159 Partner 13, 16, 19, Young & Rubicam 5, 10, 18, 31 21, 147, 183 Accessibility Group 183 Concert Hall 8, 9, Masterplan 8, 21 Etihad Airways, Spotlights 14, 15, 20, 23, 10, 19, 21, 22, 31, 32, Major Partner Creative Learning 29, 33, 35, 39, 49, 59 34, 148, 153, 179 13, 183 Centre 8, 11, 21 Staff 7, 9, 11, 12, 14, 19, Drama Theatre Google, Major Theatre Machinery 41, 50-53, 144, 146, 147, 32, 179 Partner 13, 18, 183 Project 4, 8, 10, 12, 153, 154-155, 160, 163- Forecourt Interbrand, Partner 21, 55, 159 165, 169, 170-172 8, 17, 22, 24, 31, 13, 144, 183 Welcome Centre Staff Numbers 53 34, 51, 54, 147 9, 10, 21, 22, 37, 159 Maserati, Partner Stakeholders 7, 8, 16-19 Joan Sutherland 8, 13, 17, 183 Resident Companies Theatre 4, 8, 10, 12, 8, 9, 12, 17, 24-28, 30, Statement of Cash Flows 21, 32, 50, 147, 179 MasterCard, Major 69, 121 Partner 8, 13, 17, 183 50, 51, 146, 147 Playhouse Summer Playground 38 Y&R Group, Partner Australian 31, 32, 38, 179 13, 183 Chamber Sustainability 9, 11, 18-19, Studio 17, 1831, 32, Orchestra 148-154 147, 161, 179 Zip Industries, 12, 25, 28, 147 Partner 13, 183 Sydney Opera House Utzon Room 17 Bangarra Presents 8, 9, 12, 24, People and Culture Dance Theatre 30-33 Vision 5, 7, 11, 22 9, 12, 50-53 12, 25, 28, 154 Children, Families Visitor Experiences Human Resources Bell Shakespeare and Education 7, 9, 36-38 167 12, 17, 25, 28, 30, 17, 30, 31, 38 Vivid Sydney Festival Equal Employment 146, 147 Contemporary 17, 31, 51 Opportunity, Opera Australia Music 8, 10, 12, 31 Vivid LIVE 8, 12, 13, 16, 17, 154-155 12, 17, 26, 28, 50, Indigenous 31-32 18, 19, 24, 28, 31, 54, 147, Health and Safety 146, 147 151, 152, 161 International 32 50, 51, 53 Sydney Symphony Wage and Salary Talks and Ideas Training and Orchestra 12, 13, Movements 170 12, 13, 32 Development 9, 14, 17, 49, 26, 28, 146 Welcome Centre Sydney Opera House 50-51, 52, 154, 160, 162 Sydney Theatre 9, 10, 21, 22, 37, 159 Trust Act 5, 42, 161, 168 Performing Arts 7, 8, Company 12, 17, Wilson Parking 183 24-34 26, 28, 50, 146 Symond, John AM 10, 11, 21, 42 Wolanski Foundation 174 Artistic Associates The Australian Workers Compensation 12, 24 27, 28 Ballet 12, 27, 28, Talks and Ideas 12, 13, 32 50, 55, 160, 171 Venue Hirers 24, 34 30, 146 The Arts Unit, in the Workplace Health and Resident Retail 37, 38 NSW Department of Education 29, 30 Safety 50, 51, 53 Companies Risk Management Workplace Systems 50 8, 9, 12, 17, 24-28, 50, 51, 167-169 The Balnaves Foundation 8, 13, 15, 17, 31, 147, 174 Y&R 13, 183 30, 50, 51, 146, 147 Samsung Sydney Opera 13, 16, 19, 21, 147, 183 The Getty Foundation Year Ahead 22, 159, 174 19, 22, 28, 34, 38, 51 House Presents Security & Emergency 8, 9, 12, 24, 30-33 Preparedness Total Asset Management Zip Industries 13, 183 Philanthropy 8, 11, 13-14, 51, 54, 167, 172 22 16, 17, 20, 55, 167, 174-178 Senior Executive Service Tourism 37-38, 145, 179 Donor 169, 170 Tours 4, 9, 11, 18, 21, Acknowledgement Sources of Revenue 57 37-38, 51, 54, 57, 144, 174-178 162, 179 Sponsors Founding Donors Asian Language Tours AMP Capital 174 4, 9, 37, 54, 162, 179 8, 17, 183 Fundraising 109-110 ARUP 183 Trade Marks 180 Idealists 4, 174-175 Training and Australian Ethical Development 9, 14, 17, 49, Major Donors 174 Investment 183 50-51, 52, 154, 160, 162

182 PRINCIPAL PARTNER GOVERNMENT PARTNER Our Partners Sydney Opera House acknowledges MAJOR PARTNERS and celebrates the support of our valued partners.

PARTNERS

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EVENT PARTNERS CELEBRATION PARTNER

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